WORLD TRADE  
ORGANIZATION  G/SCM/Q3/COL/30 
27 August 2004 
 (04-3586) 
Committee on Subsidies 
and Countervailing Measures  Original:   Spanish 
 
 
 
SUBSIDIES 
 
Requests Pursuant to Article 27.4 of the Agreement  
on Subsidies and Countervailing Measures  
 
Questions Posed by ECUADOR1 
   The following communication, dated 25 August 2004, has been received from the delegation 
of Ecuador. 
 
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  On instructions from my Government, I atta ch herewith Ecuador's questions relating to 
compliance by Colombia with the requirements for th e continued extension of the transition period for 
the "Special Import-Export System for Capital Goods  and Spare Parts (SIEX)" and "Free-Zone (ZF) 
Regime" subsidy programmes. 
  
 
  
                                                     
 
1 G/SCM/N/114/COL. G/SCM/Q3/COL/30 
Page 2  
 
UPDATING NOTIFICATION ON THE EXTENSION OF THE TRANSITION PERIOD FOR 
COLOMBIAN SUBSIDY PROGRAMMES 
 
 
Ecuador welcomes Colombia's efforts to comply  with the obligations entered into under the 
Decisions of the Committee on Subsidies and Countervailing Measures of 8 December 2003, 
contained in documents G/SCM/93/Add.1, GS CM/93/Add.1/Suppl.1 and G/SCM/94/Add.1, 
respectively.  
 In this regard, Ecuador wishes to ask Colomb ia the following questions, with a view to 
clarifying the scope and substance of the reforms undertaken by the latter to fulfil its obligations. 
 
A. SPECIAL IMPORT-EXPORT SYSTEM FOR CAPITAL GOODS AND SPARE 
PARTS (SIEX) 
 
As established in paragraph 9 of Decisi on G/SCM/94/Add.1, Colombia undertook to 
implement "not later than the date of this deci sion, the legal and/or regulatory or other reforms 
required, such that the period permitted for payment of deferred VAT cannot extend beyond 
31 December 2006 for such projects".   The phrase "not later than the date of this  decision", that is to say, not later than 
8 December 2003, makes it quite clear that the legal reforms required were to be adopted immediately 
to ensure that projects seeking to benefit from the de ferral of VAT payments subsequent to the date of 
the Decision of 8 December 2003 are aware that their payment deadline would not extend beyond 31 December 2006.  
 Attached to the notification by Colombia  contained in document G/SCM/N/114/COL is 
Decree No. 1811 of 3 June 2004, Article 1 of wh ich stipulates that projects under the SIEX 
programme may only by approved "up to 31 December  2004 inclusive".  Article 2 thereof then states 
that in the case of the programmes under the SIEX "that are approved after the enactment of this 
Decree, the deferred VAT payments must  be made before 31 December 2006".  
 
 In the light of the above, Ecuador would be grateful if Colombia could make Decree-Law 
No. 444 of 1967 available and reply to the following questions:   1. Were any projects approved under the SIEX programme between 8 December 2003 
and 3 June 2004?  If so, would Colombia please specify how many projects were 
approved in that period? 
  2. If Colombia did approve projects under the SIEX programme between 
8 December 2003 and 3 June 2004, would it indicate the time-limit for the deferred VAT payments that was established for the programmes for capital goods and spare 
parts mentioned in Article 173(c) of Decree-Law No. 444 of 1967 which were 
approved in that period? 
 
B.   FREE-ZONE (ZF) REGIME   
 As established in paragraph 9 of Decision G/SCM/93/Add.1, Colombia undertook to "adjust 
its domestic legislation in accordance with this d ecision and the decision in G/SCM/93" not later than 
31 December 2004.  
  G/SCM/Q3/COL/30 
 Page 3 
 
 
 To this end, Colombia attached an ex cerpt from Law No. 863 of 29 December 2003, 
repealing a number of provisions related to free- zones, to its notification G/SCM/N/114/COL of 
1 July 2004.   In this respect, and given the considerable num ber of legal provisions mentioned in Article 69 
of the aforementioned Law, Ecuador would be gr ateful if Colombia could make available the 
following legal texts:   1. Law No. 863 of 29 December 2003;  2. Tax Code; 
 3. Law No. 223 of 1995; 
 4. Law No. 488 of 1998;  5. Law No. 677 of 2001;  6. Law No. 788 of 2002;  7. Law No. 109 of 1985. 
 
 Ecuador would also appreciate a reply by Colombia to the following question:   1. Would Colombia please indicate how each  of these waivers demonstrates compliance 
with paragraph 9 of Decision G/SCM/93/Add. 1 as regards ensuring "the elimination, 
not later than 31 December 2006, of expor t subsidies under the programme which are 
granted at the national level or in any kind of jurisdiction or special economic zone"? 
 
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