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

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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004 HONDURAS required. If physical examinations are not providing adequate results, the risk management parameters for generating examinations should be adjusted or reduced. Through post audit, post verification, and physical examination, Customs has concluded that approximately 80 percent of its shipments are compliant. ♦ There is concern in Honduras and the region that goods sold in Panama are imported with undervalued invoices. This problem must be addressed on a regional level, and those parties participating in undervaluation should be penalized and criminally prosecuted for flagrant violations of customs law. ♦ ♦ ♦ ♦ ♦ The trade community is concerned that goods are entering without Customs clearance. Supporting this concern, the number of commercial declarations generated by the Customs automated system for 2003 appears low. All commercial imports over $500 are to be transmitted electronically and should be logged in the system. The Customs laboratory is understaffed and under-equipped. In fact, there is only one employee at the Customs laboratory and that person is responsible not only for customs analysis, but also for quality control. Laboratory issues requiring complex analysis are sent to Mexico, which is expensive and time-consuming. Although it may be sufficient for current processes, the existing level of automation does not provide the capabilities required to incorporate a sophisticated risk management process. In addition, the current automated system, ASYCUDA/SIDUNEA ++ 1.17d, is difficult to modify. The automated system is now available at 14 sites, and communications are said to be stable for use of both microwave and satellite linkage. The network, ADUANETT, is provided by a private association, and users pay for the network, charging their clients approximately $8 per transaction. The contract with Customs states that ADUANETT is to provide some equipment, including workstations, servers, and printers. Inspectors are selected at random to perform examinations, and examination findings are input into the system to provide an electronic history of the results. The automated system provides manifest, selectivity, declaration processing, accounting, and transit modules. Some in-house programs have also been developed, and work is under way to provide linkage with other countries. It is anticipated that, for Central American goods, the export country’s declaration will become the import declaration. Honduras is seeking, as it should, to move to another system, because of the current system’s limitations. Customs procedures are now too complex and cumbersome. All of these procedures require review to identify those that are redundant or unnecessary. Many neighboring countries have taken the initiative on this issue and reduced procedures as well as documentary requirements. Customs’ risk management system is not fully utilized. There are still many unnecessary, unproductive examinations resulting from overly broad criteria. The analysts should take into account the training received and input targeted criteria on the basis of extensive analysis to define risk and develop a methodology for updating examination criteria. A better understanding of risk management and the development of a mechanism to provide managers with performance feedback are both needed. XI-9
TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004 HONDURAS ♦ The relationship between Customs and the National Police should be improved. The police do not have opportunities to use their authority at the border because of lack of cooperation and coordination between themselves and Customs and Immigration. The distrust among these agencies impairs the country’s ability to combat smuggling. Customs views the police as using its enforcement authority to check on the actions of Customs officers and generally interfering with Customs responsibilities. Police view ♦ ♦ some Customs officers as nonprofessional. Currently, the agencies do not share information. No police officers are assigned within Customs units such as Risk Management, as is the case in other countries. A clear definition of the roles of each organization and the joint development of a strategy, with specific goals, to combat smuggling and undervaluation would do much to improve this relationship. Courier facilities and procedures need review and upgrading. According to Customs officials, courier shipments over $500 require formal entry procedures with the use of a broker; dutiable commercial shipments under $500 are processed by Customs with the courier paying duty prior to release. Although courier shipments are segregated, they are processed at the same site without any added security. There are four couriers, FedEx, UPS, DHL and TACA. FedEx and DHL have their own facilities to clear shipments and have Customs officers onsite. The Customs officer at the site is a reimbursable service for which a fee is paid monthly to the government. A best practice courier module, such as that used by Nicaragua, should be studied and copied to allow full electronic transmission of data before arrival and release of those goods not subject to duty on arrival. Dutiable goods should be processed in a secure environment. Honduran representatives should visit and review Nicaragua’s up-to-date facility in Managua and consider implementing a similar process. Courier processing is a passable operation, with express consignments being processed with minimal delay. Customs lacks the authority to ascertain and detain goods in possible IPR violations. More authority and greater training should be provided to help Customs work in this area. Also Rules of Origin training in verification of origin should be provided and consideration given to moving the process from the Ministry of Trade and Industry to Customs. ♦ The Las Manos facility is small, with officers from Nicaragua onsite. The cargo lot, which is in an open area, is large and not congested, although outside the gate there is congestion as many truckers take care of personal business, such as eating, resting, and cleaning their rigs. Little attention has been paid to upgrading this site because it is anticipated that once the Customs Union becomes a reality these border sites will no longer be required except for agricultural work. ♦ Relations with Customs should be improved and processes facilitated at Puerto Cortez. Although Cortez Customs is making some improvements in integrity, bribes are often required to gain approvals. Burdensome policies, such as the requirement to clear 30 percent of all incoming cargo and all Panamanian goods, increase costs because of higher handling charges within the port. ♦ Overall, Customs communications systems are not reliable. Communications are often down, which causes significant delays. XI-10
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