Trade and Commercial Law Assessment - Honduras - Economic ...

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004
HONDURAS
security has improved mainly due to private efforts, i.e., additional private security for
transporters.)
♦ Recently, an agreement was implemented at Puerto Cortes between the police
and port
authority that allows police access to the port facilities. Now police are entering facilities
and doing a good job of inspecting and seizing illegal goods and narcotics.
♦ The
division devoted to combating fraud and detecting IPR violations is recognized as an
important force for economic growth and has been rewarded with higher pay. The
division’s special recruitment and selection process, along with the higher salaries, has
resulted in greater integrity and higher performance for this division. In addition to being
specially recruited and carefully selected, the police in this division are well trained and
are required to take random drug tests and polygraphs.
♦ The IPR unit has been active recently
and has seized and destroyed infringing articles.
The police can only initiate action upon receipt of a judicial order, issued as the result of
a complaint filed by the owner. The police have been effective in following up on about
30 such orders in the past 6 months and are now involved in an ongoing project
with the
Business Software Association to combat illegal use of software products, based on
complaints from Microsoft.
2) National Police Issues to Address
To improve
the actions of the National Police in interdicting the flow of illegal goods across the
borders,
the following issues deserve attention:
♦ Corruption within the police is still perceived as a major problem. Although some steps
have been taken to address this issue, more efforts must be made to demonstrate that the
agency is serious about addressing it. In 2003 an internal affairs unit was created in the
police. This has produced some positive results, but the unit’s actions have been
circumscribed by legal restraints. As a result, criminals have been able to penetrate public
institutions to bribe officers to allow their illegal activities to go undetected.
♦ The police lack personnel; equipment, especially
in the area of communications systems;
and training in investigative, examination, and
surveillance techniques. Although the
United States has assisted in upgrading National Police capabilities to combat the flow of
narcotics, money laundering, and illegal immigration, the criminals still appear to be
better equipped, organized, and funded.
♦
Although smuggling and false declarations are recognized by all parties as major threats
to the economy, discovery of such transgressions and effective punishment that would act
as a deterrent are lacking. Customs claims that it cannot rely on the courts to administer
fair justice, and thus settles such cases administratively. A recommendation to establish a
special court for resolution of fiscal/Customs crimes is now being considered by
Congress. Customs has no authority to disregard the criminal code that clearly defines
what constitutes a criminal action in regard to smuggling and contraband. The issuance of
administrative penalties and settlement of cases with payment of loss of revenue create an
environment that encourages smugglers to continue and expand their activities.
XI-20