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Customs Union: Guatemala and Honduras formalize the bilateral advance declaration

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Jointly and in a coordinated manner, the Guatemalan and Honduran foreign trade and customs authorities carried out this Friday (12.03.2021) the lOfficial launch of the Advance Declaration for Goods Originating in Central America (DUCA-F), which will contribute to trade facilitation and regional economic integration, announced the Ministry of Economy of Honduras.

Esta This measure was implemented on a mandatory basis since March 1 at the Integrated Border Post of Corinto (through which the largest number of operations between both countries are recorded), within the framework of the Improvement of Deep Integration for the Free Transit of Goods and People between Guatemala and Honduras.

The adopted tool It consists of the electronic transmission of all documents that support the import or export and record the advance payment of the corresponding taxes. This process is carried out prior to the arrival of the cargo transport means to the integrated border posts, in order to expedite the process and thus further speed up the transit of goods.

In the first stage, the declarations of goods that must be transmitted in advance are only those that refer to products whose entry does not require non-tariff permits; however, as of June 1, the process will be mandatory for all goods and will also apply at the Integrated Border Posts of El Florido and Agua Caliente.

This measure, which It is the first to be implemented in the Central American region in a bilateral and coordinated manner., seeks to reduce transit and waiting times at border posts, facilitating foreign trade operations. It also supports the agenda of the Ministry of Economy (MINECO) for 2021, which focuses on attracting investments, generating employment and increasing exports.

In this regard, the  Deputy Minister of Integration and Foreign Trade, Edith de Molina, said: "The importance of the Mandatory Advance Declaration lies in the fact that the customs authority can know, in advance, the characteristics of the goods, the identification of the carrier and the means of transport, before they reach the border.” He added that “it facilitates the fulfillment of customs procedures and reduces the waiting time at the border. In the case of the project that is being started with Honduras, it has an additional advantage because the two processes, export in one country and import in the other, are coordinated and carried out simultaneously. This is only possible when countries with common borders reach this agreement.".

For its part, David Alvarado, Undersecretary of Economic Integration and Foreign Trade of Hondurass, he added that "The implementation of the Advance Declaration implies the prior completion of customs procedures in the importing country; goods with green selectivity will be handled and dispatched at the Trade Facilitation Center II.”

Meanwhile, Executive Director of the Honduran Customs Administration, Juan José Vides, added: “The implementation of the Advance Import Declaration translates into a quick and agile passage through the borders, reducing queues, time and costs for the importer.” He explained that “by adhering to the Ministerial Provision, as a country we seek to increase competitiveness in the region in matters of foreign trade; in the same way we continue with the improvement of Deep Integration between the Republics of Guatemala and Honduras.”.

In that line, the Guatemalan Customs Superintendent Werner Ovalle Ramírez, stressed that "This trade facilitation measure will contribute to streamlining and simplifying customs operations, allowing foreign trade players to expedite the clearance process, thereby complying with the provisions of the World Customs Organization (WCO) and the WTO Trade Facilitation Agreement.

To implement the second phase of the Mandatory Advance Declaration, the following steps have been defined: work on computer developments and electronic messaging, approve the procedure to be used for all modalities of the Central American Single Declaration (DUCA), develop comprehensive computer tests and train the private and public sectors.

In turn, the Secretary General of SIECA, Melvin Redondo, he stressed: “The Advance Declaration has a positive impact for users of the Integrated Border Post of Corinto, between Guatemala and Honduras, since it implies: the advance electronic transmission of the DUCA-F and corresponding supporting documents, validation of the information of the advance declaration and supporting documents by the Authorities of the Customs Services of both countries, payment of taxes by the importer, validation of the payment of taxes by the Customs Service of the importing country, notification of the computer systems of both countries to the importer and exporter to start the trip and the generation of the selectivity of both customs services..

Finally, Redondo emphasized that with the bilateral process of the Advance Declaration between both countries, Central America is at the forefront.For the first time, the region has a bilateral Advance Declaration, which implies a fundamental step to advance in the process of the Customs Union and in terms of Central American economic integration, which translates into facilities for the private sector.".

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