Ciudad del Este retailers fear Customs delays

John Gallagher

Retailers voice concern that greater Customs scrutiny at the Brazil/Paraguay border crossing could lead to reduced sales

A new Customs facility at the Ciudad del Este crossing between Paraguay and Brazil has raised fears that border retailers on both sides could lose sales. The checkpoint in Foz de Iguazu, on the Brazilian side of the Friendship Bridge, is intended to ensure that all travellers using the bridge are subject to a customs search.

Paraguayan retailers are claiming that the measure will be disastrous for their business and have been lobbying for a review of the situation. During the first few days of the operation around 50% of bridge users were subject to inspection, up from an average of 5% with the previous system.

Local observers indicate that most of the employees in the retail outlets in Paraguay are Brazilian and if the new measures result in lower sales in Paraguay, the Brazilian employees would be made redundant.

Representatives from Cuidad del Este have arranged meetings with the Brazilian authorities to try and find a solution to ensure that the flow of goods between both countries is not interrupted. Although it seemed initially that the “sacoleiros” who carry goods from Paraguay to Brazil would disappear, a new status as self-employed businessmen is being negotiated, with special tax and import duty rates.