RESTRICTED
WORLD TRADE G/STR/Q1/COL/2
25September 1996
ORGANIZATION(96-3719)
Original: Spanish Working Party onState Trading Enterprises
REPLIES TOQUESTIONS POSED BYCANADA1,NEW ZEALAND2
AND THE UNITED STATES3CONCERNING THE
ARTICLE XVII NOTIFICATION OFCOLOMBIA4
Thefollowing communication, dated 17September 1996, hasbeenreceived fromthePermanent
Mission ofColombia.
_______________
1. Whatcriteriadeterminewhetherprivatetraderswillbegrantedcontractsbythedepartment
concerned orwhether aprivate importer mayengage intrade? (New Zealand andUnited States)
Under LawNo.14of1983 (strengthening oflocaltaxauthorities) andDecree 122of1986
(Code Governing Departmental Arrangements), theDepartments aregranted autonomy forthe
administration oftheliquor monopoly.
2. What arethecriteria usedtodetermine theterms ofthecontractual agreements? What
isthecriterion fordetermining thelevelofimports? (Canada)
Exercising itsadministrative autonomy, theDepartment concerned agrees foreachcaseon
theterms oftheagreement including theduration, thequantity, anditsownpercentage share ofthe
saleprice oftheproduct.
3. How ispricing determined? How isthemark-up determined? (New Zealand/Canada)
Prices andmark-up onimported products aredetermined freely byeachDepartment.
4. Arelong-term contracts negotiated? (New Zealand)
Theduration ofcontracts ranges from three toseven years.
5. What is"ACODIL"? (Canada)
ColombianAssociationofLiquorImporters(AsociaciónColombianadeImportadoresdeLicores).
1G/STR/W/13.
2G/STR/Q1/COL/1.
3G/STR/W/10.
4G/STR/N/1/COL.G/STR/Q1/COL/2
Page2
6. Could youplease provide further general information onhowthestatetrading enterprises
operate? (Canada)
ATrading Agreement fortheintroduction, marketing andsaleofspirits, asprovided forin
Article 63ofLawNo.14of1983, ismandatory foranydepartmental enterprise producing spirits and
foranyenterpriseimportingspiritsintotheDepartmentfromabroad(examplesinAnnex).Anadditional
contract isconcluded withthedistributor ofeachofthedistilleries parties totheAgreement, inwhich
theyaccepttheprovisionsoftheagreementsignedbytherespectivedepartment.Thedistributioncontract
establishes theDepartment 'spercentage share ofthepriceoftheproduct, inthecaseofbothdomestic
products andimports. Thispercentage varies according totheDepartment. Theduration ofthecontracts
ranges from three toseven years.
Note: Asthearrangements governing departmental distilleries varyfromDepartment toDepartment,
aspecial regime iscurrently being developed forthese enterprises onthebasis ofArticle 336
ofthePolitical Constitution ofColombia, which stipulates thatStatedistilleries mustmeetcertain
criteria ofefficiency, failing which theiroperation willbeplaced inthehands ofathirdparty.TOTAL QUANTITY OFUNITS PRODUCED (750CC.UNITS) CLASSIFIED BYPRODUCT AND BYINDUSTRYG/STR/Q1/COL/2
Page3Period: January-December 1995
Distillery Aguardiente Rum Gin Vodka Aperitifs Brandy Liqueurs Wines Total
Antioquia 43,787,129 15,276,377 76,688 117,269 215,203 378,913 87,548 279,107 60,218,234
Boyaca 2,774,671 72,174 0 0 0 0 23,110 0 2,869,955
Caldas 16,138,319 12,294,013 0 30,451 1,364,391 26,290 13,579 0 29,867,043
Cauca 4,089,636 3,423 0 0 0 5,180 0 4,098,239
Cundinamarca 25,925,874 237,921 0 0 0 0 0 0 26,163,795
Huila 0 0 0 0 0 0 0 0 0
Magdalena 1,071,348 0 0 0 0 0 0 0 1,071,348
Meta 1,801,572 10,847 0 0 44,508 0 0 0 1,856,927
Nariño 3,393,516 0 0 0 0 0 0 0 3,393,516
Norte de
Santander 1,079,831 895 4,016 2,290 0 0 0 0 1,087,032
Tolima 0 0 0 0 0 0 0 0 0
Valle 16,123,696 296,523 8,959 39,521 0 0 0 0 16,468,699
Total 116,185,592 28,188,750 93,086 189,531 1,624,102 405,203 129,417 279,107 147,094,788
Source: Asociación Colombiana deIndustrias Licoreras -ACIL.TOTAL QUANTITY OFUNITS SOLD (750CC.UNITS) CLASSIFIED BYPRODUCT AND BYINDUSTRYG/STR/Q1/COL/2
Page4
Period: January-December 1995
Distillery Aguardiente Rum Gin Vodka Aperitifs Brandy Liqueurs Wines Total
Antioquia 44,766,224 15,960,038 68,887 106,239 441,736 294,636 90,323 249,496 61,977,579
Boyaca 2,958,390 102,485 0 0 0 0 24,331 0 3,085,206
Caldas 15,112,528 11,961,651 0 28,004 1,279,249 22,467 9,110 0 28,413,009
Cauca 2,895,342 0 1,536 0 0 0 8,634 0 2,905,512
Cundinamarca 27,241,020 227,532 0 0 0 0 0 0 27,468,552
Huila 0 0 0 0 0 0 0 0 0
Magdalena 646,956 0 0 0 0 0 0 0 646,956
Meta 1,724,840 21,224 0 0 55,280 0 0 0 1,801,344
Nariño 3,293,162 0 0 0 0 0 0 0 3,293,162
Norte de
Santander 1,179,615 0 0 0 0 0 0 0 1,179,615
Tolima 4,551,771 0 0 0 1,028,511 0 0 0 5,580,282
Valle 16,248,428 284,199 10,803 32,270 0 0 0 0 16,575,700
Total 120,618,276 28,557,129 81,226 166,513 2,804,776 317,103 132,398 249,496 152,926,917
Source: Asociación Colombiana deIndustrias Licoreras -ACIL.IMPORTED SPIRITSG/STR/Q1/COL/2
Page5Period: January-December 1995
(Units of750cc.)
Spirits Bottled Inbulk Total
Whisky 1,472,316 138,666 1,610,982
Brandy andCognac 199,320 758,400 957,720
Vodka 274,260 210,267 484,527
Gin 30,972 0 30,972
Wines 3,934,500 41,033 3,975,533
Other spirits 2,311,512 289,333 2,600,845
Total 8,222,880 1,437,699 9,660,579
Source: ACODIL.