Haiti: Strengthening Customs Administration in an Insecure Environment
Summary — This report examines the impact of gang violence on Haiti's customs operations and trade flows. It provides recommendations for strengthening customs administration despite the ongoing security crisis.
Key Findings
- Gang violence has severely disrupted customs operations, port activities, and land border crossings, creating significant constraints for basic economic activities.
- Haiti's tax revenues are critically low at 6.3% of GDP in FY23, making customs the single largest source of domestic revenue with significant leakage.
- Customs administrations continue to operate during crisis situations unlike other government services, making them crucial for maintaining state functions.
- Strengthened customs practices can significantly enhance state legitimacy and build trust between government and citizens through improved governance and reduced corruption.
- The security crisis has enabled increased smuggling activities and created additional security costs for economic operators in international trade.
Full Description
Haiti is experiencing a severe security crisis with increasing armed gang presence that has significantly affected social conditions and economic activities. This crisis has created major constraints and challenges for basic customs operations, with gangs threatening and closing airports and seaports in Port-au-Prince. The situation deteriorated further with political instability including the resignation of Acting Prime Minister Ariel Henry.
Customs practices and policies have significant potential to strengthen state legitimacy and build trust between government and citizens. Increased customs revenues could provide fiscal space for critical public services like health, education, and social protection, while visible improvements in governance and reduced corruption could demonstrate government responsiveness. The report notes that customs administrations typically continue operating during crisis situations unlike other government services.
The security crisis has severely impacted port activities, land border operations, and customs surveillance capabilities. Gang activity has disrupted trade flows, created additional security costs for economic operators, and enabled increased smuggling activities. The Haiti Customs Administration (AGD) faces structural weaknesses in responding to security challenges while trying to implement modernization efforts.
The report provides detailed recommendations for improving customs performance under current security circumstances, including digitalization initiatives, infrastructure strengthening, capacity building for surveillance, monitoring practices to reduce corruption, implementing consultation frameworks, and increasing cooperation with foreign customs administrations particularly Dominican Customs.