WORLD TRADE G/SCM/N/16/COL
28July1997
ORGANIZATION(97-3175)
Original: Spanish Committee onSubsidies and
Countervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI.1 oftheGATT 1994 andArticle 25
oftheAgreement onSubsidies andCountervailing 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.
Thelevel orpercentage isfixed bytheGovernment, according totheproduct andmarket
conditions.
2. Notification period
Updating ofthenotification totheWTO, atDecember 1995.
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
5. Form ofsubsidyG/SCM/N/16/COL
Page2
There havebeennochanges.
6. Towhom andhowthesubsidy ispaid
There havebeennochanges.
7. Fiscal costofthesubsidy
In1995,thevalueoftheCERTpaidoutamountedtoUS$85.4million,ofwhichUS$21.1million
represent thevalue ofthesubsidy.
8. Initiation andduration oftheprogramme
There havebeennochanges.
9. Statistics ontheimpact oftheprogramme
Year Total exports
(inUS$
million)Exports with
CERT1
(inUS$
million)CERT
granted2
(inUS$
million)Percentage of
subsidy3Value of
subsidy4
(inUS$
million)
1995 10,129.5 2,129.8 85.4 0.99 21.1
1Represents thevolume ofexports withright toCERT.
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.
2. Notification period
Updating ofthenotification totheWTO, atDecember 1995.
3. Objective oftheprogramme
There havebeennochanges.
4. Basis andlegislation
- Article 173(c) ofDecree-Law 444of1967
- Article 11ofDecree 631of1985
- Annulment ofArticle 10ofResolution 2386 ofINCOMEX, 1992
- Addition ofResolution 682ofINCOMEX, 1995G/SCM/N/16/COL
Page3
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 inUS$
million)Capital goods
imports (c.i.f.
value inUS$
million)Imports
benefiting from
theprogramme
(f.o.b. value in
US$million)Value of
incentive (in
US$million)
1995 5,333.3 3,519.7 316.0 21.9
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.
2. Notification period
Updating ofthenotification totheWTO, atDecember 1995.
3. Objective oftheprogramme
There havebeennochanges.
4. Basis andlegislation
- Law7of1991
- Decree 2350 of1991
- Decree 2131 of1991
- Decree 1552 of1992
- Decree 971of1993G/SCM/N/16/COL
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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 byfreezonein1995
(inUS$)
Freezone US$f.o.b.
Bogota 0
Rionegro 3,235,021
Palmaseca 43,649,762
delPacifico 83,570
Santa Marta 3,319,681
Barranquilla 58,660,695
Cucuta 1,143,200
LaCandelaria 0
Cartagena 51,702,737
Total 161,794,666