Liquor Smuggling in Guatemala

The companies engaged in importing and distributing fine liquors have indicate that the high tariffs on these products are encouraging smuggling.

Thursday, July 12, 2012

An article in Siglo21.com.gt quotes the president of Distribuidora Alcazarén, Mariano Vadillo Portabella, who said: "the problem is so severe, that there are smugglers do not even need to use front companies to break the law, but go from person to person making individual visits to offer their products at very low costs, although with risks to consumer health, as the products do not meet the relevant standards and may have been tampered with".

The 7 largest companies in the sector have joined forces to combat smuggling, which they claim is on a massive scale, undermining the competitiveness of registered companies, "It's hard to compete against those who do not pay a penny in tax, who evade not only import tariffs but also the ISR (Income Tax) and VAT (Value Added Tax), it is unfair competition. "

"The government is responsible for smuggling because taxes are too high. When taxes are lowered smuggling will be eradicated, it is clear that the higher the tax is, the more appetite there is for this illegal business", said Vadilla.



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More on this topic

Warnings in Panama Over Increase in Smuggling

July 2015

The private sector has signalled an increase in seizures of drugs, food, smuggled cigarettes, and consumer products from illegal sources.

From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP):

The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) has expressed concern over the increase in illegal trade including smuggling, counterfeiting and piracy.

Action Against Smuggling Demanded

May 2012

Businesses in Guatemala have suggested creating an anti-smuggling unit made up of the Public Ministry and the National Civil Police Force.

The members of the Chamber of Industry of Guatemala (CIG) proposed to the Vice President Roxana Baldetti that a series of measures be taken to combat smuggling, which is affecting trade.

Reduced Smuggling in Guatemala

November 2012

Anti smuggling operations are working, resulting in tax collections by Customs grow by 3%.

From a publication in Diario de Centro América:

Working together to reduce smuggling

The first quarterly report of the National Commission Against Contraband (CONACON) contains encouraging news: From June to September smuggling has been reduced and customs revenue increased 3%.

Smuggling at Mexico - Guatemala Border

August 2013

Central American Business Chambers call for stopping unfair trade in both directions between the two countries.  

"We must, as soon as possible, stop the illegal movement of goods from Guatemala to the southern border of Chiapas, in order to be able to aspire to making progress on all our objectives in this new era of trade between Mexico and Central America," said Jose Mejia, president of the Central American Binational Union of Chambers of Commerce, Industry and Investment.

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