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Where do you fit?

My Son and the Guatemalan Indians

by C. F. Fischer, III

Several years ago my youngest son, Ted, visited Honduras with a small group to repair and paint mission and clinic buildings in the rural areas. He paid his own way, and with exception of his first and last nights there, all of his nights were spent in a sleeping bag. It was quite an adventure for a teenager.

Since then he has returned to Guatemala "solo" several times to explore volcanos and Indian ruins, visit the most remote villages, take Spanish courses, and just learn more about the country and its people in general.

Soon he came to realize that he could visit Central American countries the rest of his life, giving of his time, energy, and what little money he could come up with. But, the results would be extremely temporary and barely noticeable at very best.

Recently, he concluded that a venture in free enterprise would likely produce the best, quickest, and most lasting benefit for the people of Central America -- and most especially for the poor Indians in Guatemala.

Accordingly, he went to the most remote Indian villages and purchased samples of colorful woven cloth handcrafts, mainly bracelets and belts. These he brought back to Birmingham, Alabama, where he attends school. Every boutique, shop, and store in the major malls in Birmingham that saw the samples immediately placed orders. Soon other merchandisers in New York, Baltimore, Chicago, Los Angeles, and elsewhere began placing orders.

This was all the excuse my son needed to return to Guatemala to get more supplies and set up a dependable network for future orders. Although he had been assured by two U.S. Customs offices and the Caribbean Basin Initiative office that these products were exempt from customs, Houston Customs seemed unaware of this. The customs people in Houston could not figure out how to classify a few dozen woven cloth bracelets, so the goods were held.

After missing a couple of flights, and facing an early Monday class, my son had no choice but to leave his precious little cargo and get on the next flight out of Houston.

"Welcome to the real world, son. Did you not know that you should engage the services of a customs broker? Oh, I know that a broker isn't required by law. But, I also know that a broker is required by the facts, conditions, and circumstances. Don't get one and you can wait for clearance until your merchandise rots."

My son reacted simply and forthrightly. He acknowledged that the "system" is extremely boring, time-consuming, and frustrating. But, he was determined to proceed within it.

He has since contacted other U.S. Customs Offices. Fortunately, the number of different answers he received did not exceed the number of government offices contacted. With a little experience under his belt, he moved forward.

Meanwhile, back at the Indian villages in Guatemala, the natives are weaving colorful bracelets of the most intricate designs which they are happy to sell to my son's group for four cents each. It is, to be sure, tedious, back-breaking work. Designs come from the head, and execution comes from the fingers and toes.

Four cents per bracelet seems like a pitifully low price. And in some respects that may be true. On the other hand, however, less than two months ago the same bracelets were being bought by a "city native" for only two cents each. And the "city native" also sold staples to the Indians at 20 times the going prices in Antigua or Guatemala City.

The Indians are very happy to get four cents per bracelet. That's twice as much as they received less than two months ago. More important, the men who pick up the bracelets deliver staples at cost. These workers likewise earn four cents per bracelet. They too are pleased to earn so much.

Thus the first large order -- 8,000 cloth bracelets -- arrived by air. U.S. Customs in Birmingham yielded to U.S. Customs in Mobile, which in turn insisted upon a customs broker.

The customs broker's fee and charges equalled the cost of 3,375 bracelets, and the duty was equivalent to the price of 1,120 bracelets at the point of purchase. Broken down, "Preparation and Filing of the Consumption Entry Form" cost 1,500 bracelets. "Postage" -- buying, licking, and affixing one 25-cent stamp -- cost 250 bracelets; "Messenger Service" cost 250 bracelets; "Bond Fee" cost 500 bracelets; and so on.

In the final analysis, 50 Indians work more than a week producing something you can see, touch, wear, and enjoy -- and earn less than the broker's charges for shuffling government papers for an hour. Something is terribly wrong, and I don't feel that it is with the Indians.


Mr. Fischer is president of Hartford & Slocomb Railroad Company in Dothan, Alabama.
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The Freeman is the monthly publication of The Foundation for Economic Education, Inc., Invington-on-Hudson, NY 10533. Phone (914)591-7230. FAX (914)591-8910. E-mail: freeman@fee.org. FEE, established in 1946 by Leonard E. Read, is a non-political, educational champion of private property, the free market, and limited government. FEE is classified as a 26 USC 501(c)(3) tax-exempt organization.

This article appeared in the March 1989 issue of The Freeman. Copyright © 1989 by The Foundation for Economic Education. Permission to reprint this article is granted provided appropriate credit is given and two copies of the reprinted material are sent to The Foundation.