Industrial sectors ask for actions against smuggling

By Mayora IP

Smuggling levels in Guatemala reached a total value of USD 2.1 billion in 2017, according to calculations made by the Guatemalan Chamber of Industry. In previous years smuggling values were of USD 1.9 billion (2015) and USD 800 million (2009). 

The high figures alerted different sectors of the national industry, which have increased their claims to the government asking for better actions to stop the practice, specially those sectors most affected by the illegal entry of merchandise through the 139 blind crossings the country has. Among those are the food and beverage industry, the tobacco industry and the footwear industry.

Guatemalan executives of tobacco giants British American Tobacco and Philip Morris said to newspaper Prensa Libre that smuggled cigarettes occupy between 25% and 40% of the total cigarette market in the country. One of its consequences is that the revenue service of the government collects 15% less than its annual goal for the tax on the distribution of tobacco, around USD 5 million less per year.

As for the footwear sector, due to the country's non-compliance with the 1999 labeling regulation (which requires detailing the materials of which the shoe is made), many pairs of shoes enter the country legally through Customs but classified as used or detailing other materials than the proper ones.