Dossier: Making a difference

Overcoming the challenges faced by landlocked countries: the example of Bolivia

5 March 2025
By Rómulo Alvarez Antezana, National Customs of the Plurinational State of Bolivia

Located in the centre of South America, Bolivia is characterized by a varied topography ranging from low-lying plains to high mountain ranges. Owing to its strategic location, Bolivia has the potential to become a connecting hub between the economic regions of the Andean Community (abbreviated as CAN, from the Spanish Comunidad Andina) and the Southern Common Market (known by its Spanish acronym MERCOSUR), as well as between the Pacific and Atlantic Oceans.

However, Bolivia’s landlocked situation and rugged terrain increase the costs linked to the physical cross-border movement of goods.

Such costs are divided into two categories:

  • Costs linked to the transportation of goods requiring specially equipped vehicles and skilled drivers;
  • Costs linked to import, export and transit processes.

To tackle challenges stemming from its geography and landlocked situation, and to foster greater trade competitiveness, Bolivia has taken various measures ranging from investing in road and Customs infrastructure and digitalizing Customs procedures to increasing cooperation between neighbouring countries and exchanging electronic data. These actions will not only benefit trade operators but also contribute to Bolivia’s economic growth.

Investment in road, Customs and logistics infrastructure

Over the past few years, the Government of Bolivia – under the administration of President Luis Alberto Arce Catacora and the President of the Bolivian National Customs Service, Karina Liliana Serrudo Miranda – has made investment in Bolivia’s road and Customs network a top priority.

The East-West corridor is a great example of infrastructure investment. Stretching over 2,585 kilometres, the East-West corridor is made up of 35 sections and two branches, and links Bolivia’s main cities with Brazil and with Chile and its ocean ports. Over the past three years, millions of US dollars have been invested in improving infrastructure across Bolivia, ensuring that it is in optimal condition for transporting goods.

In 2023, the Bolivian Customs Administration inaugurated a multipurpose complex at the border crossing between Cañada Oruro, Bolivia, and Infante Rivarola, Paraguay. The complex, spread over 22 hectares, required more than USD 21 million in investment and is designed to provide quality service to external trade operators while facilitating coordination between supervisory authorities.

Another significant investment was made in the development of the Bermejo Customs Complex, on the border with Argentina, where facilities for external trade operators were improved. In total, the Bolivian National Customs Service has invested more than USD 1 million in improving Customs infrastructure across the south of Bolivia.

In 2024, the Integrated Control Area of the Pisiga border Customs Administration on the border with Chile was inaugurated, close to the Tambo Quemado multipurpose complex which provides modern infrastructure and efficient logistic services. Both facilities are strategically located in the bioceanic corridor connecting Bolivia and Chile. Investment in these facilities amounted to USD 45 million.

The modern infrastructure of these facilities provides trade operators with:

  1. Specialized areas for goods inspection and storage, streamlining goods management and inspections and reducing risks of damage or loss;
  2. Customs complexes with advanced technology, including automated systems to monitor loads and vehicles, thus improving transparency and reducing human error.

Coordinated border management

The IT systems of national control authorities such as Customs, immigration and phytosanitary services are interlinked, and the authorities share facilities and related costs. This setup allows for the implementation of faster and simultaneous procedures.

Through negotiations between Argentina, Brazil, Chile, Paraguay and Peru, integrated inspection mechanisms have also been implemented at international level, which allow for joint inspections, thereby facilitating the transit of goods and reducing red tape.

Between 2023 and 2024, Binational Border Commissions between Bolivia and its neighbouring countries were set up to develop joint protocols in order to manage the flows of goods more efficiently. These commissions agreed on measures such as joint inspections and coordination mechanisms for transit operations. They also adjusted border crossing times and pushed for the implementation of single window systems in each country in order to speed up inspection processes between agencies at national level.

Such measures have achieved a significant cut in land transit time. For instance, the time required to travel from La Paz, Bolivia, to the Port of Arica in Chile, dropped by 25%, from 48 hours to 36 hours. Likewise, logistics costs decreased from USD 100 to USD 80, according to the data provided by drivers.

In addition, border operating hours between the Republic of Chile and the Republic of Paraguay were extended from 12 to 24 hours a day, while negotiations are ongoing with other neighbouring countries.

Modernizing Customs

The Bolivian Customs Administration rolled out a series of advanced technologies to boost efficiency and strengthen border security. Such technologies include scanners for non-intrusive inspection of vehicles and an ANPR camera system that captures images and videos of the registration plates of vehicles entering through the borders.

Bolivian Customs also developed an IT system, which is managed through an online platform, to issue advance rulings on origin and tariff classification.

It is also currently working on implementing the digital Certificate of Origin, which will represent a qualitative and quantitative leap for Bolivian foreign trade, significantly cutting costs for trade operators.

Bolivia is the only simultaneous member of the two main integration blocs in South America: CAN (Bolivia, Colombia, Ecuador and Peru) and MERCOSUR (Argentina, Bolivia, Brazil, Paraguay and Uruguay). It is also a member of the Latin American Integration Association (ALADI), a broader trade bloc that includes Latin American and Caribbean countries. In line with MERCOSUR-Bolivia Economic Complementarity Agreement No. 36, two pilot tests carried out with the Republic of Paraguay and the Federative Republic of Brazil were successfully completed. Issuance and receipt of digital Certificates of Origin with full legal effect is scheduled for the first quarter of 2025. The exchange of certificates with the Republic of Argentina and the Republic of Uruguay is expected to begin over the course of 2025.

In the context of its relations with the Andean Community, Bolivia will begin to exchange digital Certificates of Origin with the Republic of Colombia as of 28 February 2025 using INTERCOM, the Andean Community’s common interoperability platform. There are also plans to extend such exchanges to the Republic of Ecuador and the Republic of Peru during 2025. By the end of June 2025, the exchange of certificates is scheduled to be implemented under a bilateral scheme with the Republic of Chile. The aim is now to include the 13 ALADI member countries.

Finally, on 30 September 2024, the VUCE platform (Ventanilla Única de Comercio Exterior – Single Window for Foreign Trade), developed with the support of the WCO Secretariat, was launched. On this occasion, the first Customs procedure was carried out via the platform, with the spotlight on the Bolivian Institute of Metrology (IBMETRO) which issued the first digital certificate to the first importer/user and the first Customs broker. Four other public issuing entities are expected to join the VUCE initiative, and other institutions will join progressively.

Identifying bottlenecks and measuring success

Time Release Studies (TRS), based on the methodology and software developed by the WCO, were carried out under the advice of WCO experts at several border crossings: the Yacuiba border crossing point with the Republic of Argentina; the Suárez Port/Quijarro Port border crossing point with the Federative Republic of Brazil; and at the Customs Administration of the City of Santa Cruz de la Sierra.

Conducting TRS made it possible to identify factors that lead to delays, as well opportunities to optimize release times and boost operational efficiency across a particular border. As a result, an agreed Action Plan was drawn up, including 24 specific actions for the Yacuiba border, 20 specific actions for the Santa Cruz Internal Customs Administration and 24 specific actions for the Suárez Port/Quijarro Port border. All activities are managed by the various entities involved in the Action Plan and by the Bolivian National Committee on Trade Facilitation, while action plan fulfilment will be assessed in future studies.

Exchanging data between Andean countries

When Bolivia took over the CAN Pro Tempore Presidency in 2019, it pushed forward the implementation of INTERCOM, the Andean Community’s common interoperability platform.

The platform, which consists of specialized hardware and software, is part of the Andean Digital Agenda project, and allows entities from CAN countries to connect to the platform and share structured and harmonized documents, including Single Administrative Documents, Andean Value Declarations, Mandatory Sanitary Notifications, Certificates of Origin, Phytosanitary Certificates and Zoosanitary Certificates.

The platform was fully rolled out by the end of 2024. On 28 February 2025, Bolivia will begin to exchange Certificates of Origin with the Republic of Colombia to kick off the launch of INTERCOM.

Outlook

Bolivia has achieved significant advances in infrastructure, technological modernization and interinstitutional coordination, thus strengthening its position as a key player in South American economic integration and global trade flows, while proving its commitment to build a more prosperous and connected future for its citizens.

The WCO has played a key role in these advances by supporting Bolivia through specific initiatives to implement the WTO’s Trade Facilitation Agreement (FTA). However, the success of these initiatives will hinge on maintaining the pace of investment in infrastructure, adequately training Customs staff and ensuring effective coordination between public and private entities.