WORLD TRADE G/SCM/N/25/COL
28July1997
ORGANIZATION(97-3185)
Original: Spanish Committee onSubsidies and
Countervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI.1 oftheGATT 1994 and
Article 25oftheAgreement onSubsidies and
Countervailing Measures
COLOMBIA
Thefollowingcommunication,dated10July1997,hasbeenreceivedfromthePermanentMission
ofColombia.
________________
I. TAX REIMBURSEMENT CERTIFICATE (CERT)
1. Description oftheprogramme
TheTaxReimbursement Certificate (CERT) isameasure designed tosupport andencourage
exports calculated asapercentage oftheirf.o.b. value.
Thelevelorpercentage isfixed bytheGovernment, according totheproduct andthemarket
conditions.
2. Notification period
Updating ofthenotification totheWTO, atDecember 1996.
3. Objective andpurpose ofthesubsidy
There havebeennochanges.
4. Basis andlegislation
- Law48of1983
- Decree 636of1984
- Decree 637of1984
- Law7of1991
- Decree 446of1992
- Decree 1608 of1992
- Decree 1650 of1992
- Decree 708of1995
- Decree 955of1996G/SCM/N/25/COL
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5. Form ofsubsidy
Decree 955of1996 amends Article 1ofDecree 446of1992 anddecreases CERT levels as
follows:
Decree 446of1992 Decree 955of1996
2.50% 2.25%
4.00% 3.60%
5.00% 4.50%
6. Towhom andhowthesubsidy ispaid
There havebeennochanges.
7. Fiscal costofthesubsidy
In1996,thevalueoftheCERTpaidoutamountedtoUS$82.2million,ofwhichUS$20.2million
represent thevalue ofthesubsidy.
8. Initiation andduration oftheprogramme
There havebeennochanges
9. Statistics ontheimpact oftheprogramme
Year Total exports
(in
US$million)Exports with
CERT1
(in
US$million)CERT
granted2
(in
US$million)Percentage of
subsidy3Value of
subsidy4
(in
US$million)
1996 10,574.1 2,118.0 82.2 0.95% 20.2
1Represents thevolume ofexports withright toCERT, according toDecree 955of1996.
2Represents thebudget outlay foreach year.
3Equivalent totheeffective rateofCERT minus theestimated rateoftaxrefunds.
4Calculated bymultiplying exports withCERT bythepercentage ofsubsidy.
II. SPECIAL MACHINERY IMPORT-EXPORT SYSTEM
1. Description oftheprogramme
Thismechanism permits theduty-free importation ofmachinery andparts foruseinthe
manufacture ofgoods intended, wholly orpartly, forexport.G/SCM/N/25/COL
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2. Notification period
Updating ofthenotification totheWTO, atDecember 1996.
3. Objective oftheprogramme
There havebeennochanges.
4. Basis andlegislation
- Article 173(c) ofDecree Law444of1967
- Article 11ofDecree 631of1985
- Annulment ofArticle 10ofResolution 2386 ofINCOMEX, 1992.
- Addition ofResolution 682ofINCOMEX, 1995.
5. Form ofsubsidy
There havebeennochanges.
6. Towhom andhowthesubsidy ispaid
There havebeennochanges.
7. Subsidy perunit
There havebeennochanges.
8. Initiation andduration oftheprogramme
There havebeennochanges.
9. Statistics ontheimpact oftheprogramme
Year Non-traditional
exports
(f.o.b. value in
US$million)Capital goods
imports
(c.i.f. value in
US$million)Imports benefiting
from the
programme
(f.o.b. value in
US$million)Value of
incentive
(inUS$million)
1995 5,087.4 3,514.9 622.3 39.5
III. FREE ZONES
1. Description oftheprogramme
Thefreezones arespecified geographical areas within thenational territory inwhich customs,
exchange controls, foreign trade, taxation andcapital investment aresubject toaspecial legalregime.
Foreign goods entering freezones areexempt fromimport formalities andduties. Goods originating
inthenational customs territory (NCT) which enter afreezoneareconsidered tohavebeenexported
andgoods produced inthefreezonewhich enter therestoftheNCT areconsidered tohavebeen
imported, which entails duties ontheexternal value added.G/SCM/N/25/COL
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2. Notification period
Updating ofthenotification totheWTO, atDecember 1996
3. Objective oftheprogramme
There havebeennochanges.
4. Basis andlegislation
- Law7of1991
- Decree 2350 of1991
- Decree 2131 of1991
- Decree 1552 of1992
- Decree 971of1993
- Decree 2233 of1966
5. Form ofthesubsidy
There havebeennochanges.
6. Towhom andhowthesubsidy ispaid
There havebeennochanges.
7. Duration ofthesubsidy
There havebeennochanges. Subject totheWTO commitments.
8. Statistics ontheimpact oftheprogramme
Colombian Exports ByFreeZone In1995
(US$)
Freezone US$f.o.b.
BOGOTA 63,127
RIONEGRO 14,885,816
PALMASECA 37,012,686
DEL PACIFICO 4,796,629
SANTA MARTA 2,289,552
BARRANQUILLA 57,381,614
CUCUTA 1,505,100
LACANDELARIA 0
CARTAGENA 51,702,737
TOTAL 169,637,260