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

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004
HONDURAS
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officers stationed at these locations, and zone and warehouse now fully reimburse
Customs for their services. However, most of these personnel are not fully utilized. All
users of the zones and the warehouse operators have automated inventory control systems
that are audited frequently by the public agencies assigned oversight responsibilities.
Once the warehouses and zones are directly linked to the Customs operational system,
which is anticipated by the end of the year, onsite Customs supervision should be
eliminated and Customs should adopt a post audit approach to oversight. This is
particularly pertinent to zone operations that have little or no revenue impact. The
operator should have the appropriate guarantees on file and be designated as responsible
for controlling movements into and out of the facility. Once the operator’s inventory
control systems are certified as able to competently perform this function, Customs
should be withdrawn from the site. Adoption of this approach would produce significant
cost savings. In addition, the certification of inventory control procedures and the
resulting post audit approach would improve Customs control over the operations.
Facilitate the movement of products requiring SPS or food safety regulation and
harmonize procedures within the region. All CAFTA countries should make OIRSA
SEPA services the standard throughout Central America. The most modern procedures,
the best equipped and staffed laboratories, and the highest quality of inspection services
are in those countries, Honduras and
Guatemala, where such services are provided.
Moreover, regional personnel are less subject to corruption and collusion with the local
trade community. Reliance on OIRSA has improved the national Agricultural Ministry’ s
access to collected user fees for modernization of its operations and would eliminate the
need for each country to station its inspectors at posts throughout the region where its
cargo arrives, as contemplated by the Customs Union. OIRSA personnel, representing a
regional body, could perform inspections for all regional goods in accordance with each
country’s requirements even if not standardized.
CAFTA countries should establish a regional coordination and information center where
all exporters and public SPS agencies could obtain information about U.S. import
requirements and what technical assistance is necessary to help public agencies meet
these standards. It has been suggested that OIRSA assume responsibility for this center.
The center would have to have a contact in the United States who could achieve a speedy
resolution to issues that it could not respond to competently. A Web site could be
established by the regional entity to disseminate information regionally about U.S. SPS
requirements as updated criteria are received. This would be supplemented by seminars
held throughout Central America by representatives by agencies such as USDA,
AHPHIS, FSIS, FDA, and EPA, as well as U.S. import groups such as the grocers
associations.
SPS and food safety procedures must be simplified to reduce the cost and time of
compliance while maintaining sufficient controls to safeguard public health. Under
current procedures, private sector sources project that a minimum of 6 percent to 8
percent of a product’s cost is attributable to compliance; this percentage must be reduced.
The simplification process should include all agencies involved in regulation of the
industry, as well as the private sector. Much progress has been made in this sector with
respect to Central American products, and this same process must now be extended to
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