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Viewing cable 06LAPAZ1885, CUSTOMS HOPES "SOCIAL CONTROL" WILL REDUCE

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Reference ID Created Released Classification Origin
06LAPAZ1885 2006-07-11 12:39 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0005
RR RUEHWEB

DE RUEHLP #1885 1921239
ZNR UUUUU ZZH
R 111239Z JUL 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 9902
INFO RUEHAC/AMEMBASSY ASUNCION 5990
RUEHBO/AMEMBASSY BOGOTA 3308
RUEHBR/AMEMBASSY BRASILIA 7157
RUEHBU/AMEMBASSY BUENOS AIRES 4414
RUEHCV/AMEMBASSY CARACAS 1697
RUEHPE/AMEMBASSY LIMA 1703
RUEHME/AMEMBASSY MEXICO 1749
RUEHMN/AMEMBASSY MONTEVIDEO 3910
RUEHQT/AMEMBASSY QUITO 4328
RUEHSG/AMEMBASSY SANTIAGO 8885
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC
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