US embassy cable - 05TEGUCIGALPA366

UNCLAS TEGUCIGALPA 000366 
 
SIPDIS 
 
STATE FOR EB/IFD, WHA/EPSC, AND WHA/CEN 
TREASURY FOR DDOUGLASS, RWARFIELD 
STATE PASS AID FOR LAC/CAM 
 
E.O. 12958: N/A 
TAGS: EFIN, ECON, KCOR, ETRD, PGOV, PINR, KMCA, KJUS, HO 
SUBJECT: HONDURAS:  POST SUPPORTS CUSTOMS SERVICE REQUEST 
FOR TECHNICAL ASSISTANCE TO IMPLEMENT CAFTA, FIGHT 
CORRUPTION 
 
 
1. This is an action request; please see para 3. 
 
2. On February 10, Post received a written request, dated 
January 31, 2005, from Customs Director Arquimedez Jimenez 
for technical assistance to improve various facets of the 
Honduran Customs Service.  Jimenez specifically cites CAFTA 
implementation and anti-corruption as key motives for his 
request.  In addition, the U.S. Treasury Office of Technical 
Assistance is engaged with the Honduran tax authority (the 
DEI, home also to the Customs Service) in an overall 
reorganization and improvement program.  Jimenez's technical 
assistance request would help him to take maximum advantage 
of this reorganization to improve customs efficiency and to 
reduce evasion, fraud, and corruption.  An informal 
translation of his request follows in para 4. 
 
3.  Action request and comment:  Post requests that 
appropriate agencies, including but not limited to State, 
Treasury, USTR, DHS, and USAID give full consideration to 
Jimenez's request, with a view toward identifying resources 
and providing appropriate technical assistance as soon as 
possible.  This request is timely, as it leverages existing 
momentum within the GOH to reform and restructure the Customs 
and Tax services.  Assistance of the kind identified in 
Jimenez's request would facilitate CAFTA implementation and 
assist in cracking down on corruption -- each of which has 
been identified as a top priority for U.S. foreign policy in 
Honduras.  Improving the Honduran Customs Service's capacity 
to analyze trends, derive intelligence, and manage risk also 
directly supports key USG efforts to combat the flow of 
illicit drugs, fight money laundering and the financing of 
criminal or terrorist groups (both through over/under 
invoicing and smuggling activities), and improve the overall 
security and safety of maritime traffic. Improving customs 
service responsiveness and accountability falls clearly 
within the original intent of the USG's Trade Capacity 
Building program, and Post strongly supports identification 
of TCB funds to provide the requested TA as soon as possible. 
 Given its immediate benefit to law enforcement operations, 
Post encourages agencies with funds for border security 
enhancement to consider how they too could facilitate or 
support the requested training. 
 
4. Informal translation of January 31 letter: 
 
Begin text. 
 
((Complimentary opening)) 
 
The Executive Revenue Directorate, aware of its 
responsibilities and obligations, as well as the benefits 
that subscribing to the U.S.-Central American Free Trade 
Agreement (CAFTA) would bring to our country, under the 
obligation to seek out mechanisms that would permit the 
implementation of that Agreement and the facilitation of 
trade with dynamic customs controls, and with the goal of 
improving our knowledge and capacity in this regard; 
therefore allow me to request of the U.S. Embassy ... that 
you provide to the employees and officers of this institution 
training in regards to those subjects referred to in CAFTA, 
specifically in the areas of: 
 
- Risk Management 
- Rules of Origin 
- Electronic Certification of Origin 
- Procedures to speed-up express delivery 
- Customs Audits and Verification 
- Other trade facilitation measures 
- Measures to combat contraband and customs fraud 
 
((Complimentary close)) 
 
End text. 
 
Pierce 
Pierce