Growing cooperation between customs and the private sector to combat illicit trafficking was evident at a discussion held by the Federation of Chambers of Industry of Central America and the Dominican Republic (FECAICA), organized to explore how best to carry out this complex, multi-stakeholder process involving law enforcement and government agency intervention.
As part of that joint commitment, the event on April 28, 2021 focused on the topic “Illicit trade and the role of the WCO in Central America and the Dominican Republic.” Participants examined both the strategies adopted at regional level and those of the respective national customs authorities.
The opening and welcoming remarks were given by President of FECAICA, Robert Vinelli, He said that the objective is to defend trade because it is the most important instrument for economic growth, but that trade cannot take place under illicit conditions. He clarified: “I am not talking about products such as drug trafficking only, but also cigarette exports, especially from China, are affecting the taxes of Central American countries and we must stop it. This is the purpose of the event.”
Likewise, Axel Romero García, Manager of the Commission for the Defense of Formal Trade at the Chamber of Industry of Guatemala, presented the Regional Committee for Legal Trade as an initiative that supports private sector actors to promote actions to prevent and combat illicit trade and improve the business climate.
In that line, Werner Ovalle, Regional Vice President of the World Customs Organization (WCO), he said emphatically: “Within the strategic actions promoted within the framework of the WCO Work Plan, we promote the strengthening of cooperation and joint work between Customs and different entities that fight against illicit trade.”. Clarified that Illegal trade must be viewed from two perspectives: the fight against customs smuggling and customs fraud.. “There are still bad practices by some importers who continue to undervalue goods and misclassify them or make incorrect declarations of their origin, which have a negative impact on countries. The approach to combating illicit trade involves both paths, and we work hand in hand with the private sector in regards to smuggling and with all the actors in international trade, working on ethics and integrity, as well as encouraging voluntary compliance by importers.”
Thus, Ovalle developed the WCO Strategic Plan which contains three fundamental objectives such as trade facilitation, tax collection and protection of society; he also explained the regional interaction with intelligence liaison offices and laboratories for the exchange of customs information, and the strategic actions promoted within the framework of the regional vice-presidency.
The regional head of the WCO highlighted some proposals to combat illicit trade in the region of the Central American Integration System:
- The development of the regional risk strategy, which yielded significant results in regional and binational operations.
- Approval of the Central American RILO office based in Guatemala.
- The validity of the Model Law to combat illicit trade and transnational organized crime through PARLATINO.
- FEDAICA's application to become a member of the WCO Private Sector Advisory Group.
At the end of his speech, Ovalle encouraged the generation of new strategic actions that allow the region to be more participatory in the operations promoted by the OMA.Combating illicit trade is not the exclusive responsibility of customs services"We need greater involvement from the private sector," he stressed.
"It is necessary that joint work goes beyond preventive actions and advances to legal processes. We cannot continue without the private sector," he added. Alejandra Hernández Sánchez, from the Ministry of Finance of Costa Rica.
Eduardo Rodríguez, from the General Directorate of Customs of the Dominican Republic, commented: “We must prevent Organized Crime from communicating better, we must take as a basis the Regulatory Framework of the World Customs Organization, in its pillars of Customs-Customs and Customs-Private Sector relations, to improve communication between us.”
Meanwhile, Samadhy Martínez, Director General of Customs of El Salvador, stressed that it is important to have new legal provisions as the law establishes, and to add actions such as alliances with the private sector. “We are aiming to identify these risks and share information among colleagues from other customs administrations.”
In conclusion, Juan José Vides, head of the National Customs Directorate of Honduras, He mentioned the low level of respect for legality in the region, and therefore considered that the PARLATINO law is a tool to strengthen the State's capacity to prevent illicit trade because it will allow the start of administrative sanctioning processes. "We must improve the exchange of information to advance institutional coordination with greater involvement of the private sector," he concluded.
Mauricio Viera, coordinator of the Chair “Combating and preventing illicit trade and transnational organized crime” At the University for Peace in Costa Rica, she provided support in moderating the webinar that illustrates the efforts in the fight against this scourge, which can be reduced with a regional and comprehensive approach.
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