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Making It Easier to Clear Customs in Latin America

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Created on April 25, 2014
 

This post originally appeared on International Trade Administration Tradeology blog.

Diana Alvarez recently completed an internship in the International Trade Administration’s Office of South America.

The Look South campaign is encouraging companies to seek export opportunities in Latin America.

More than 40 percent of current U.S. exports go to Mexico, Central America, and South America. Both its geographic proximity and the presence of 11 free trade agreements in the region make these markets attractive for U.S. businesses.

As the U.S. government continues to support businesses expanding in Latin America through the Look South Initiative, one key aspect being addresses is working through potential barriers to trade.

Issues like long customs-clearance times, inconsistent interpretation of customs regulations, and subjectivity of customs inspectors can add to the time and cost of the exporting process. These costs can especially affect small business exporters.

To address these problems, the International Trade Administration is working alongside U.S. Customs and Border Protection, governments across Latin America, and other public and private sector partners on the Customs Modernization and Border Management Reform Program.

This program brings business and government together to discuss the challenges faced at the border and to develop solutions that will make clearing customs easier, faster, and more efficient.

The program began in Costa Rica, El Salvador, and Honduras and Honduras has already helped create a simpler and more efficient border-crossing process:

Honduras extended its operating hours at many border posts and harmonized them across the many different border agencies.

El Salvador eliminated several administrative requirements for express shipments, saving companies time and money.

Costa Rica recently launched its one-stop web portal that will allow companies and government agencies to submit and review all customs-related documents in one place.

As part of a second phase of the program, training workshops and dialogues were held in Peru and the Dominican Republic in March, with events in Guatemala and Uruguay scheduled to take place.

We’re excited to see more businesses expand to Latin America under the Look South Initiative, and we look forward to being a part of a smoother trade process under the Customs Modernization and Border Management.

If you’re ready to increase your business’s presence in Latin America, contact your nearest Export Assistance Center or visit export.gov/looksouth.

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