CUSTOMS HOPES "SOCIAL CONTROL" WILL REDUCE

UNCLAS LA PAZ 001885 SIPDIS SENSITIVE SIPDIS STATE FOR WHA/AND LPETRONI COMMERCE FOR JANGLIN ENERGY FOR CDAY AND SLADISLAW TREASURY FOR SGOOCH E.O. 12958: N/A TAGS: ETRD EINV ECON ENRG EPET PGOV PREL BL SUBJECT: CUSTOMS HOPES "SOCIAL CONTROL" WILL REDUCE CONTRABAND REF: 05 LA PAZ 3065 ¶1. (SBU) Summary: Customs officials recently proposed a "social control" mechanism to reduce contraband, arguing that appropriate incentives would increase the identification and seizure of illegally traded goods. The proposal is part of a restructuring process in which officials are evaluating existing operations, setting new goals, and tackling corruption. The changes may be well intentioned, but it appears unlikely they will significantly improve Customs' enforcement capacity. End summary. ¶2. (SBU) In a July 7 meeting with EconOff, Customs President Marcia Morales said she and other officials hoped a proposed "social control" mechanism would increase the identification and seizure of illegally traded goods. Morales said Customs officials were working with counterparts in government ministries, superintendencies, and law enforcement agencies to create incentives for individuals and communities to report possible contraband and to reward those whose assistance leads to seizures. According to Morales, rewards could include monetary payments to individuals or GOB-sponsored investments and public works projects in helpful communities. ¶3. (SBU) The proposal is part of a large-scale restructuring process in which officials are evaluating existing operations, setting new goals, and tackling corruption. Morales said she hoped to reduce clearance delays but offered few specifics, noting that evaluations were still underway. She highlighted a new political will to make changes and mentioned that one of her principal goals - driven by frequent complaints of liquefied petroleum gas (LPG) shortages, particularly in Bolivia's western highlands - is to reduce widespread smuggling of LPG, diesel, and kerosene, especially to Peru, where it reportedly sells for two to four times the local price (reftel). Morales said she was working closely with neighboring countries' customs services and hoped to see marked improvements in bilateral cooperation; she also said Chilean customs officials recognized Iquique as a major port of entry for illegal imports and were eager to pursue joint enforcement initiatives. Morales also emphasized her commitment to tackling corruption, noting that she had fired several Bolivian Customs officials suspected of taking bribes. ¶4. (SBU) Comment: The changes may be well intentioned, but it appears unlikely they will significantly improve Customs' enforcement capacity. Leading Bolivian businessmen have privately mocked the "social control" mechanism as weak and ineffectual, and few expect the GOB's proposed incentives to undercut Bolivians' tendency to turn a blind eye to the importation, distribution, and sale of contraband. In the absence of enhanced seizure capacity, greater legal clout, and closer cooperation with law enforcement authorities, Customs will likely make few dents in the illegal goods trade. End comment. GREENLEE