CUSTOMS COLLECTION: THREE-FOLD INCREASE NEAR

UNCLAS PORT AU PRINCE 003068

SIPDIS

STATE FOR WHA/CAR
DRL
S/CRS
SOUTHCOM ALSO FOR POLAD
STATE PASS AID FOR LAC/CAR
INR/IAA (BEN-YEHUDA)
TREASURY FOR MAUREEN WAFER

E.O. 12958: N/A
TAGS: PGOV PREL KDEM HA PKAO
SUBJECT: CUSTOMS COLLECTION: THREE-FOLD INCREASE NEAR
CAPITAL HARD WON



1. Summary: Econoff met December 8 with new director of the
Haiti-Dominican Republic border crossing at Malpasse, Jeantal
Clairvil, who has increased customs revenue from USD 375,000
to USD 1.3 million in the three months since his appointment.
In the past shippers have avoided taxes by under-invoicing
their trucks and using local residents to ferry high-value
goods across the border. Clairvil said he had cracked down
on both smuggling methods. Irrespective of his success,
Clairvil said that the USD 1.3 million did not even approach
what should have been collected because many of his agents
remain corrupt despite his best efforts. End Summary.


2. Econoff met December 8 with the newly installed Haitian
director of customs Jeantal Clairvil at the Malpasse crossing
between Haiti and the Dominican Republic just east of
Port-au-Prince. Since his installation, Clairvil said he has
tried hard to crack down on smuggling. As a result of his
efforts, customs revenue at the post has increased from USD
375,000 in September to USD 1.3 million (both figures
converted from Haitian gourdes - USD 1 equals gourdes 40).
He said he was not aware of contraband passing through his
border post; drug and gun smugglers simply go around the post
in the surrounding hills to avoid the possibility of
discovery.


3. According to Clairvil between 30 and 60 trucks cross the
border per day delivering basic supplies, primary materials
for Haitian assemblers and food staples for the Haitian
market. In order to avoid taxes, shippers attempt to hide
the value of their cargoes by presenting false documentation.
In addition, shippers use local residents to hand-carry
high-value items across the border and so avoid tariffs.
Clairvil said he has worked on both problems to the chagrin
of locals and shippers alike by arranging through Dominican
authorities for certified inventories to accompany trucks and
by stopping locals from walking freely back and forth across
the border.


4. Despite his success, Clairvil said he does not believe he
has even approached taxing the real value of the goods that
come across the busy border and he is concerned for his
safely. Of his 30 agents, Clairvil said he only trusts four
or five. He lamented that corrupt customs officers continued
to aide smugglers even after his arrival. Further, he felt
his success made him a target. The second day after he
arrived, an angry crowd smashed the windows of his car
protesting the new enforcement of the laws. Now, he makes
the hour drive to and from the customs office each day with
an armed escort of four police officers.


5. Comment: Progress at the Malpasse post is heartening.
However, resentment from poor locals is indicative of the
wider corruption problem that plagues Haiti. Locals
benefited from lax law enforcement for years and see
smuggling as a means of livelihood, not as a bad practice
that hurts government revenue and stifles development. Poor
and rich have used corruption to line their pockets and
anti-corruption efforts in Haiti will likely continue to meet
stiff resistance from both groups.
CARNEY