Salvadoran carriers estimate that between January and May 2021, the cost of freight between El Salvador and Guatemala has increased from $500 to $548, a rise that is largely explained by the increase in the price of diesel.
Representatives of the Asociacion Salvadorena de Transportistas Internacionales de Carga (ASTIC) state that in recent months the price of a gallon of diesel has increased by $0.63 in the central zone.
Since El Salvador, Costa Rica and Panama have set a 72-hour time limit for freight drivers operating in the region, hundreds of units have decided to halt their operations as a measure of pressure.
Due to the health crisis resulting from the covid-19 outbreak, Salvadoran, Costa Rican and Panamanian authorities decided that the drivers of the cargo transport units entering the country will have only 72 hours to make the formalities at the borders, and to unload and reload the goods from the vehicles.
While authorities have reactivated the process for binational customs liberalization, entrepreneurs have pointed to constraints on issues related to bureaucracy, corruption, and infrastructure at border crossing points.
The governments of Guatemala and El Salvador have resumed work in Technical Groups to liberalize binational border posts. In a statement, they reported that dialogue has been revived over customs, sanitary and phytosanitary issues, migration, security, and legal and tax issues.
Cargo carriers are reporting that customs formalities can take up to 27 hours, due to the constant changes of personnel and their lack of training.
On the border of La Hachadura and Amatillo there are 15 kilometer long lines of vans which are waiting make the appropriate arrangements to pass through. Representatives from the Association of International Freight (Astic) have called for the establishment of a permanent table with the customs office in order to discuss and solve these problems, however, "... the General Department of Customs has shown no interest ...".
Carriers claim that the new rules on the $18 fee for revision using scanners is not clear when it comes to charging the fee on consolidated cargo.
This new conflict has arisen from the fact that the rules of the law do not specify whether in the case of consolidated cargo the $18 must be paid per package or if the fee should be divided among all packages, as they claim has been done up until now.
With the amendment to the Customs Simplification Act charges for inspections using scanners on international freight have been eliminated, but are maintained for cargo of national origin or destination.
The Legislature has eliminated the fee of $18 for use of scanners on international freight, but not on national cargo, ie freight departing from or arriving at El Salvador.
Problems persist in the process of reviewing merchandise at the border posts in Amatillo and La Hachadura causing delays to cargo trucks.
Double review processes, recurring failures with x-ray machine inspection and the absence of a contingency plan for unforeseen delays has generated delays of between 19 and 23 hours for the approval of entry and exit of goods, said the Salvadoran Association of International Freight Carriers (ASTIC).
Only cargo destined for El Salvador should be charged with the $18 fee for the inspection with scanner, request freight carriers.
According to the Secretariat for Central American Economic Integration (SIECA), this fee violates conventions and trade agreements in the region. In addition, they believe that the inspections and the time it takes to submit all shipments to the procedures are excessive.
After the Salvadoran Supreme Court suspended the Fonat law, carriers decided to resume their work.
"There is no longer a reason for the strike," said Raul Alfaro, president of the Association of International Cargo Transporters (ASTIC).
"The Chamber accepted a constitutional challenge submitted by the ASTIC against the collection of accident insurance, namely the Fund for Victims of Traffic Accidents (Fonat), from which the Legislature excluded foreign transporters, but not Salvadorans," noted an article in Elsalvador.com.
An agreement has been made to reform the law "Fondo de Atención para Víctimas de Accidentes de Tránsito" (Fund for Attention to Traffic Accident Victims) to exempt carriers carriers who already have private insurance from additional charges.
The agreement was reached in the Finance Committee of the Salvadoran Congress after the Salvadoran Association of International Freight Carriers (ASTIC by its initials in Spanish) threatened to paralyze the service at all of the country's border crossings, on 1 July.
The regional freight sector has agreed to purchase insurance to protect accident victims.
Prensalibre.com.gt reports that "The government of El Salvador and cargo transport unions in Central America, agreed yesterday in "supporting" a legal reform which alleviates them from the payment of a tax on those who already pay insurance to cover against any accidents, an official said. "
The main freight union of Central America has issued an ultimatum to the government of El Salvador to modify the collection of the new tax levied at customs offices.
Representatives of these unions which integrate the Central American Council of Transport have given a deadline of May 31 to amend this charge, otherwise on that date, if Congress has not amended the law which created the new tax, the truckers will go on strike for an undefined period causing heavy losses to Central American companies.
Goods vehicles can not pass through customs posts at the Salvadoran border, where Treasury officials are on strike.
Various business groups have expressed concern about the strike, which is causing serious economic losses for businesses.
Regarding this, the Chamber of Commerce and Industry in El Salvador states that "We have learned from our partners that the suspension of customs duties has already begun to generate losses of perishable products, delays in delivery times and possible shortages of basic goods, especially vegetables from other countries in the region and those that supply El Salvador. "
In the absence of ‘marchamos’, the products are accumulating at the customs border in El Salvador, causing additional costs and delays to carriers and enterprises.
Since last Saturday, at the borders of El Amatillo, Angiatú and La Hachadura, freight carriers have had to cover extra costs in order to bring in merchandise and avoid a collapse in trade flows.
The Salvadoran Association of International Cargo Transport has announced that from next week there will be an adjustment in freight prices.
Raul Alfaro, president of the Salvadoran Association of International Cargo Carriers (ASTIC), said that what carriers want is an adjustment of freight prices, which they have avoided for a long time despite increases in the price of diesel.
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