US invests $18.8 million in regional customs project

Photo of author

By LatAm Reports Staff Writers

The project consisted of reducing costs in imports and exports and in Guatemala, Honduras and El Salvador.

The U.S. government invested $18.8 million through the United States Agency for International Development (USAID) and regional partners, with the aim of promoting the economic integration of Guatemala, Honduras and El Salvador.

The purpose of the Regional Trade Facilitation and Border Management Project was to reduce import prices and increase exports, in addition to facilitating trade and management across borders,

The project promoted economic integration and compliance with trade facilitation agreements established with the World Trade Organization (WTO) and focused on the customs union, maintaining security and border crossing control.

U.S. Ambassador William Duncan said the project’s effort is crucial to strengthening economic integrity and trade management processes in the countries that make up the so-called Northern Triangle.

An effort that has been crucial to strengthen economic integration and improve the efficiency of the trade management processes in El Salvador, Guatemala and Honduras.
William Duncan, U.S. Ambassador to El Salvador

The achievements of the project are the reduction of 39 per cent in time and the reduction of costs for importing goods across the various borders of the three countries.

According to the managers, there was also a 36 per cent reduction in the time required for physical inspections at key ports and a 50 per cent decrease in the number of physical documents requested, reducing more than one million copies in print. In addition, the 76 per cent decrease was achieved in the time required for health procedures.

Time reduction in the pharmaceutical industry

At the regional level, together with the Secretariat for Central American Economic Integration (SIECA), it provided training on economic integration, risk management and trade facilitation to officials of border management and control institutions in Guatemala, Honduras and El Salvador.

In addition, the Superintendency of Health Regulation received support with a system that reduces registration times for pharmaceuticals, medical devices and chemicals, benefiting more than 17,000 users of laboratories, pharmacies, drugs and other related sectors.
William Duncan, U.S. Ambassador to El Salvador

Benefits for Guatemala and Honduras

In Guatemala, it reduced by 45 per cent in the release of merchandise and an estimated saving of $9 million per year for the private sector, in addition to promoting the initiative of paperless customs – where the documents are prioritized digitally and thus reduce the use of paper.

In Honduras, the control of goods was improved, providing a better service to users through the implementation of the Coordinated Inspection System between the National Service of Health and Agri-Food Quality (SENASA) and Honduran Customs reducing the required time in the processes by 45 percent.

This article has been translated after first appearing in Diario El Mundo