Bolivia Country Profile

Customs Administration

Individual Corruption

According to a 2005 survey by Red Anticorrupción Bolivia, households and public officials rank the customs service as one of the most corrupt public institutions in Bolivia, second only to the police.

Business Corruption

Companies express deep concern about corruption in the customs service, which is cited as among the Bolivian public services most in need of reform. Customs is considered to be characterised by arbitrary decisions and inefficiency, especially by importers. The main mechanism of corruption is the use of so-called piloteros, who cooperate with customs officials. The piloteros make sure that goods are guided to the customs service's warehouses where they are kept until companies pay bribes to release the goods.

In a system of parallel customs (aduana paralela), customs officers reportedly impose their own taxes for not registering the goods in the official system. In operational customs posts, smuggling and institutionalised corrupt dealings are everyday activities, especially in customs posts far from the central office, such as Puerto Suarez, where the smuggling of goods is alleged to be the main source of income for the population.

Political Corruption

The National Customs Service has frequently been accused of large-scale corruption and of contributing to the inflow of contraband to Bolivia. The Minister of Finance heads a multi-agency council that deals with contraband issues. The National Customs Service has reduced the levels of corruption to some extent, but observers report that contraband still flows comfortably into Bolivia.

Frequency

The World Bank & IFC: Doing Business 2010:
- A standard export shipment of goods requires 8 documents and takes 19 days at an average cost of USD 1,425 per container.

- A standard import shipment of goods requires 7 documents and takes 23 days at an average cost of USD 1,747 per container.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business leaders give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Bolivia a score of 2.8 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

The World Bank & IFC: Enterprise Surveys 2006:
- Close to 16% of companies expect to give gifts to get an import licence.

- It can take up to 33 days to clear direct exports and up to 51 days to claim imports, approximately twice the regional averages.

Transparency International: Global Corruption Barometer 2005:
- Citizens give the customs administration a score of 4.4 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').