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IV. TRADE POLICIES AND PRACTICES BYMEASURE
(1) Overview
1. In1990, when thefirstTrade Policy Review ofColombia took place, amajor trade
liberalization process hadjustbeeninitiated under theApertura programme. Atthetime, there were
25different tariff rates withpeaks ofupto200percent. Balance-of-payments restrictions, tariff
surcharges, import quotas andmonopolies wereinforce. Import licensing, applied selectively inall
sectors, wasfocused onfinished goods. Export controls guaranteed domestic market supplies.
2. Asaresult oftheliberalization programme, thetrade régime hasbeentransformed. Tariffs
havebeenrationalized andthespread reduced. Thepeakratehasfallen to35percentwhile thesimple
tariffaverage isone-third ofitsprevious level, at11.5percent. Import surcharges havebeeneliminated;
import prohibitions andlicensing reduced; import procedures have beensimplified; recourse to
balance-of-payments measures hasceased; anddistortive preferences favouring domestic suppliers
intheareaofgovernment procurement havebeenrepealed.
3. Atpresent, therange oftrade-related policy measures isfocused onafewsectors, including
agriculture, where protection andassistance aregranted through: (i)levies under theAndean Price
Band system; (ii)reference orminimum import prices; (iii)non-automatic import licensing;
(iv)local-content requirements under thedomestic absorption scheme; (iii)amechanism forthe
stabilization ofdomestic agricultural prices; (iv)marketing arrangements; and(v)subsidized credit
tosmall producers. Export assistance isstillprovided under thetaxreimbursement (CERT) andduty
exemption (SIEX) schemes, butatlower rates. Export finance isprovided atclosetocommercial terms.
Inaddition totaxexemptions, thefree-trade zones régime nowprovides forcredit onpreferential terms.
Overall assistance todomestic production bymeans ofdifferential energy prices (e.g., forelectricity,
coalandoil)isbeing reduced asprices areraised toopportunity costsorworld prices, ashasalready
happened forfueloilandpropane gas(Chapter V).
4. Inrecent years, partly inaccordance withregional orGATT/WTO commitments, legislation
hasbeenadopted orupdated inanumber ofareas suchascustoms valuation, preshipment inspection,
anti-dumping andsafeguards. Asinother Andean Group countries, thelegal framework forthe
protection ofintellectual property rights hasbeenreinforced. Newlegislation isunder preparation
incertain other areas (e.g., import licensing, standards), buttheauthorities plantousetheavailable
implementation periods fordeveloping countries under theWTO provisions.
(2) Measures Directly Affecting Imports
(i) Registration anddocumentation
5. Since theprevious review customs procedures havebeengreatly simplified and,according
totheauthorities, clearance isnowmade inhours, rather thandaysormonths. Newlegislation on
customs documentation andprocedures wasintroduced in1992; since thenitsprovisions havebeen
amended, clarified andexpanded.1TheCustoms service, nowtheDirectorate ofNational Taxes and
Customs (Dirección deImpuestos yAduana Nacionales ,DIAN) hasbeenstreamlined bymerging the
taxandcustoms administrations (Dirección deImpuestos Nacionales andDirección deAduanas
1Decree 1909, 27November 1992, amended, inter alia,by:Decree 1672, 1August 1994; Ministry of
Finance Resolution 0371, 30December 1992.Colombia WT/TPR/S/18
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Nacionales )oftheMinistry ofFinance.2Further restructuring ofDIAN, intended toimprove duty
collection andreduce evasion, hasbeenoutlined inproposals forrevenue-enhancing taxreforms that
were adopted inlate1995 (Chapter I).
6. Itisnotnecessary touseanauthorized customs agent toclear commercial shipments.
Noexclusive rights aregranted tocustoms agents, butspecific business requirements wereputinforce
inApril 1995.3
7. Allcommercial imports other than"minor (value) imports" orurgently needed spare parts,
remain subject toregistration withtheColombian Institute ofForeign Trade (INCOMEX); thisis
asame-day, automatic procedure.4Registrations ofimports frompublic sector agencies arescreened
todetermine, interalia,whether localsubstitutes areavailable.5Imports ofcertain agri-chemicals such
aspesticides orfertilizers must alsoberegistered withtheMinistry ofAgriculture.
8. Basiccustomsclearancedocumentationrequirementscompriseanimportdeclaration(declaración
deimportación )6,which must beaccompanied byanimport registration certificate (registro de
importación ),acommercial invoice, andabilloflading orother appropriate transport documents.7
Other documentation mayberequired incertain circumstances, including thepacking list(since 1990),
apreshipment inspection certificate (certificado deinspección pre-embarque) andacustoms value
declaration(declaracióndevalorenaduanas),whenthef.o.b.valueisequaltoorhigherthanUS$5,000.
Acertificate oforigin isneeded forgoods eligible forpreferential treatment (seesections (ii)(d) and
(xviii)). Requirements foritems subject tohealth (e.g., agricultural products, foodstuffs, alcoholic
beverages), security (arms, munitions) orother controls (e.g., substances usedincocaine production)
include, interalia,import licensing, health, purity orconformity certification (seesection (xv)). From
1995, noconsular authentication isrequired forcommercial invoices ordocuments issued byforeign
authorities.8
9. Allimports mustbestored inbonded warehouses (privately-owned warehouses under customs
control) forinspection. Merchandise deposited formorethansixworking daysaresubject togradually
increasing charges. Goods canbestored inbond foruptosixmonths.
10. Following theintroduction ofaself-valuation procedure (autoliquidación) forimporters in
January 1993(section (viii)), customs officials arenowresponsible forinspecting goods, when required
bytheAutomaticComputerizedCustomsSystem,toverifythedescriptionagainsttheimportdeclaration.
Customs clearance canberefused foranumber ofreasons, including when thedeclared value isless
thantheminimum official price fixed bytheCustoms (seesection (ix)). Goods maybeconfiscated
2Decree 2117, 29December 1992.
3Decree 2532, 6November 1994; Customs Resolution 5855, 20December 1994.
4Higher Council ofForeign Trade Resolution 001, 2January 1995.
5Dun&Bradstreet Information Services (1994); Bureau ofNational Affairs (1995), IMF (1995).
6Thepayment ofimport duties andtaxes iscertified onthisdocument.
7Decree 755of1990 cited inDun&Bradstreet Information Services (1994), p.313.
8Decree 2150 of1995.WT/TPR/S/18
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ifnotcorrectly documented orclassified.9Since 1994, DIAN hasbeenabletoauthorize theimmediate
delivery ofimported merchandise totheimporter upon presentation oftheimport declaration anda
certificate ofpreshipment inspection issued byaspecialized enterprise (Sociedad de
Certificación )(section (vii)).10
(ii) Tariffs
(a) Structure
11. On1January 1991 Colombia adopted theAndean Group 'sNomenclatura Arancelaria delos
Países Miembros delAcuerdo deCartagena (NANDINA), based ontheHarmonized System of
Commodity Description andCoding (HS).11Asat1January 1996, theColombian tariff(HS96),which
ispublished intheOfficial Journal (Diario Oficial) aswellasbyprivate firms, contains 6,728 ten-digit
tariff lines.12TheHigher Council ofForeign Trade (Chapter II)isresponsible formodifications to
thetariff.13
12. Allduties areadvalorem, levied onthec.i.f.value ofimports, except forcaseswhere reference
prices areinforce (section (ix)). Since 1January 1993customs duties andothertaxesaffecting imports
must bepaidtoanylocalcommercial bankbefore customs clearance.
(b) Tariff levels
13. Since 1990, Colombia hasrestructured itstariff, reducing theoverall average fromanestimated
32.3 percentin1988 to11.5percentin1996 (Chart IV.1). Thetariff structure haschanged from
oneof25different rates, ranging from 0to200percent14tofive main rates, ranging
from 0to20percent. Themain exceptions tothis,discussed later, areforautomobiles andparts,
tariff quotas foritems tariffied under theUruguay Round Agreement onAgriculture, andlevies under
theAndean Price Band system. Since theincorporation oftheimport surcharge rateinthetariff in
1992 (seesection (v)),import duties haveconstituted thesecond most important source ofindirect
taxrevenue, accounting formore than6percentofcentral government income (19.6 percentoftotal
fiscal revenue) in1994.
9Articles 30(g)and34ofDecree 1909, 27November 1992, andtheir amendments. Colombian customs
procedures provide thatimport declarations maybecorrected where clearance isrefused, onpayment ofpenalty;
where acorrection isnotpossible, thegoods maybeconfiscated pending legal action; during thisperiod, an
importer maypresent aLegalization Declaration forclearance against anadministrative penalty.
10Article 1ofDecree 2531, 16November 1994.
11The Colombian version oftheNANDINA nomenclature was first published inDecree 3104
(28December 1990), modified byDecree 1550 (19June 1991); afewmonths laterrates were amended and
tariff linesforcertain items (e.g., industrial inputs suchasdiesel oil,chemicals, glass, glassware, precious metals,
metal alloys aswellascertain transport equipment forpublic useandscientific instruments) were splitup
(Decrees2095and2096,6September1991).AllthesechangeswerenotifiedtotheGATT(L/6884,15July1991,
L/6918, 22October 1991). Fortrade within theLatin American Integration Association (LAIA), Colombia uses
theNALADISA nomenclature which isalsobased ontheHS.
12Asindicated inINCOMEX (1995), p.28.
13Paragraph 2ofArticle 14ofLaw7,16January 1991.
14This information corresponds tothesituation asof1988 (GATT, 1990, p.122).Colombia WT/TPR/S/18
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14. SinceJanuary1995Colombiahasappliedthefive-tierCommonExternalTariff(ArancelExterno
Común )orCEToftheAndean Group, withratesof0,5,10,15and20percent,apart fromcertain
exceptions.15Thelatest tariff wasissued inDecember 1995.16
15. ThecurrentframeworkoftheCET,includingnationalexceptions,arecontainedinAndeanGroup
Decision 370oftheCommission oftheCartagena Agreement (Comisión delAcuerdo deCartagena ).17
Under thisDecision, Colombia isauthorized bytheAndean Group to:
-apply ratesof0or5percenttoproducts orrawmaterials andcapital goods which arenot
produced by,oravailable from, other members ofthegroup (section (e));
15Decree 205, 27January 1995. Thelarger partoftheCET rates arecommon toallmembers ofthe
Andean Group except forBolivia andPeru (GATT, 1993; GATT, 1994; andWTO, 1996).
16Andean Group Decision 381, adopted byDecree 2317, 26December 1995.
17Andean Group Decision 370(Arancel Externo Común ),Official Gazette oftheCartagena Agreement 166,
2December 1994. This Decision, adopted byDecree 205(27January 1995), determines thedegree of
harmonization between thecustoms tariffs ofthemembers oftheAndean Group.WT/TPR/S/18
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-provide duty-free treatment for31eight-digit NANDINA items related tohealth and
education;18
-exempt 230eight-digit NANDINA items (corresponding to242ten-digit lines orabout
4percentofthetotal) temporarily fromCETrates.19According totheColombian authorities,
thisexemption reflects thefactthattariff escalation intheCETisnotsufficient toencourage
production ofcertain semi-manufactures.
16. Inlinewiththecommon automotive policy followed byColombia, Ecuador andVenezuela,
Decision 370authorizes theimplementation ofratesofupto40percentonimports ofcompletely
built-up (CBU) motor vehicles, andupto5percentoncompletely knocked-down (CKD) vehicles
andmotorcycles.20Asfrom 1994, Colombian imports ofCBU vehicles fromoutside thesub-region
aresubject toratesof15,20and35percent; CKD kitsaredutiable at3percent.21Levies under
theAndean Price Band system arealsoauthorized under Article 8oftheDecision (section (iv)).
17. Specific duties oncertain cinematographic products wereabolished inDecember 1990, when
theHarmonized System nomenclature wasadopted.22
18. Chart IV.2illustrates changes tothedistribution ofadvalorem rates(i.e.excluding specific
rates, tariff quotas, etc.)since thelastTrade Policy Review ofColombia. Theprevious pattern of
dominance ofhighrateshaslargely beenreversed: in1988 close to50percentoftariff lineshad
rateshigher than25percent, while in1996 almost 40percentoftariff lineslieintherange of0to
5percent.
(c) Tariff bindings, including Uruguay Round commitments
19. From 13December 1990to30June1993, Colombia 'sGATT tariffbinding obligations were
waived, pending thetransposition ofitscustoms tariff intotheHSandcompletion ofArticle XXVIII
procedures. Anewconsolidated Schedule LXXVI wasannexed totheGeneva (1993) Protocol
18These include electricity, certain medicines containing insulin, rubber prophylactics, photographic and
cinematographicfilms,newspaperpaper,printedmaterial(comprisingbooks,newspapers,maps,etc.),banknotes,
waste andscrap andbarsofironorsteel, tractors, certain harvesting machines, andseveral types ofvessels
(Annex 3,Andean Group Decision 370).
19Thisexemption isauthorized forthefour-year period December 1995 toDecember 1998. Under Article 9
ofAndean Group Decision 370, theproduct coverage istobereduced by50items each yearandeliminated
onthefourth year. While rates applied forthese items areingeneral setat5percent, incertain cases where
thestageofprocessingisadvancedthelevelishigherthanthatoftheCET(Annex4,AndeanGroupDecision370).
InColombia 'scase, higher tariffs (1992 level) affect 30ten-digit NANDINA items including: glucose, sulphur,
fertilizers, petrochemicals andironsheets andcopper wires.
20Article 7ofAndean Group Decision 370.
21These rates were introduced in1994 inaccordance withArticle 3oftheComplementarity Agreement of
theAutomotive Sector and9ofitsAddendum. Thespecial tariff treatment forCKD landtransport equipment
iscontained inChapter 98(disposiciones detratamiento especial )ofthecustoms tariff.
22Decree 3104, 28December 1990.Colombia WT/TPR/S/18
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on1December 1993.23InDecember 1993, Colombia invoked Article XXVIII:(5) andthusreserved
itsright tomodify itsSchedule during thethree-year period beginning on1January 1994.24The
authorities indicated thatthisexemption hadbeen requested withaviewtopreserving Colombia 's
rights relating totherenegotiation ofbindings.
20. Under the1993 Schedule, Colombia 'stariffbinding commitments priortotheUruguay Round
covered some51ten-digit NANDINA lines, including three agricultural items, withratesranging from
15to80percent.25These areestimated tohaverepresented 1percentoftariff linesor3percent
ofmerchandise imports in1991, excluding petroleum products. Certain items from non-GATT
contracting parties were subject toduties higher thanbound rates.
21. IntheUruguay Round, Colombia extended itsbinding commitments tocover itsentire tariff
atceiling levels. From 1995, thegeneral level ofbound rates onmanufactured goods hasbeen
23GATT document L/7195/Add.4, 13December 1993.
24GATT document TAR/248, 23December 1993.
25Manufactured items under thisSchedule aresubject torates of:(i)30or35percent(certain chemicals,
plastics, rubber items andman-made fibres), and,(ii)40to80percent(certain industrial machinery andtheir
parts, tools, electric power generators, electric transformers, measurement instruments, veterinary instruments,
wrist watches).WT/TPR/S/18
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35percent,except forcertain items.26Colombia reserved therighttostage tariff cutsontextile and
clothing items overaten-year period. Regarding agricultural items, tariff bindings alsoreflect
"tariffication" commitments (section (xi)). Final bound rateswillrange from 15to227percent, to
befullyimplemented bytheyear2004; forthose affecting three items (drygreen peas, lentils, fresh
apples) thefinalrateswerealready applied from1995, aspartofpre-Uruguay Round commitments.27
22. Under current access commitments agreed intheUruguay Round Agreement onAgriculture,
tariff quotas apply to67four-orsix-digit items. In-quota bound ratesrange from75to227percent.
Inaddition, minimum access quotas for10items havebeenestablished within-quota bound rateat
80percent.28Applied rates in1995 ontheproducts concerned ranged from 0to64percentand,
according totheauthorities, imports ofmostgoods subject totheminimum access obligation largely
exceeded thequota commitment. Aquota allocation system wasplanned tocome intooperation for
certain products inthesecond halfof1996.
23. Inviewoftheexistence ofbinding commitments onmanufactures inthepre-andpost-Uruguay
Round Schedules, Colombia 'sobligations wereduetobeconsolidated intooneListprior totheend
of1994.29Fortheperiod between January 1996 andApril 1997, Colombia 'sbinding commitments
havebeenwaived toallow theintroduction ofchanges oftheHarmonized System (HS96)intoits
schedule.30Theauthorities indicated totheSecretariat thatthissingle List,containing thetransposition
ofschedules intotheHS96,wastobesubmitted byJune1996.
(d) Tariff preferences
24. Asdiscussed inChapter II,since 1990 Colombia hasconsiderably enlarged thescope ofits
tariff preferences, which nowcover imports originating inLAIA, Andean Group, Group ofThree,
Central American andCARICOM countries, andPanama (Table AII.2). Preferences permit reductions
from them.f.n. rateofbetween 12and100percent.
26More specifically, exceptions comprise: (i)certain travel accessories (e.g., bags), clothing (including hats),
automotive sector items, parachutes andwrist-watch bracelets, whose binding level at40percent; (ii)certain
chemicals andrubber items withbindings at30percent; and,(iii)items contained inits1993 Schedule of
commitments (Part I,Section II,Schedule LXXVI, 15April 1994).
27PartI,Section I-A,Schedule LXXVI, 15April 1994. Other commitments oraspects ofthecommitments
contained inColombia 'sSchedule andrelated totheAgreement onAgriculture andtrade inservices arediscussed
insections (2)(xx); (3)(viii); (4)(iii) and(iv); andChapter V.
28Quota levels aretoincrease byrates ranging from 68to241percent; formaize andsorghum quotas start
from zero. Binding commitments subject totariff quota limitations allow forlower binding levels. Bound rates
forimports outside quota levels, contained inPart-I Section I-AoftheSchedule LXXVI, aresignificantly higher.
Items withazeroincrease inquotas include certain types ofmilkandmilkfat(including butter), maize, rice,
sorghum, millet, malt, wheat gluten, soybeans, certain oilseeds, animal fatandgrease, vegetable oils,sugar
andoilcakes.
29GATT document TAR/W/93, 13October 1994.
30WTO documents: WT/L/124, 16January 1996; G/MA/W/6 (Draft Decision onExtension ofTime-Limit),
24June 1996 (final decision inWT/L/173).Colombia WT/TPR/S/18
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(e) Tariff exemptions
25. Since 1990thevalue oftariffexempt imports isestimated tohaveincreased byafactor of27;
theleading product categories which benefited from thistreatment include durum wheat, gasoline,
machinery,telecommunicationequipment,fertilizers,transportequipment,medicinesandprintingpaper
(Chart IV.3). Thegranting ofsuch exemptions issubject toauthorization bytheImports
Committee (Comité deImportaciones )ofINCOMEX. TheCustoms service isresponsible forits
implementation.
26. In1990, thetariff exemptions régime wasre-defined byeliminating general exemptions (for
imports bytheprivate sector) andrationalizing export-related exemptions (seebelow).31Tariff exempt
imports nowinclude: rawmaterials, inputs (including packaging material), semi-manufactures, capital
goods andpartsforexport production, processing orrepair under theSpecial Import/Export Systems
(SIEX andVallejo Plan)(seebelow); inputs andequipment forthefisheries sector; machinery and
equipment forsmall-scale goldmining activities andforthepharmaceuticals andfertilizers industries;
printing paper forthepublication ofscientific andcultural books andmagazines; items forming part
offoreign investment; imports bypublic entities; material forpublic educational andhealth services,
andformining andhydrocarbons exploration; anditems forfree-trade zones, freeports andspecific
regions (sections (3)(xiv) and(4)(v)).32
31Decree 2184, 17September 1990.
32Fisheries Law(LeydePesca) 13,15January 1990; Article 9ofDecree 255,11February 1992; Law191,
23June 1995; Law218, 17November 1995.WT/TPR/S/18
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27. Legislation onthePlanVallejo andSIEX treatment wasstreamlined in1992.33Eligibility for
SIEX concessional treatment istiedtoexport performance requirements.34Between 1992 and1994,
SIEX benefits covered 3.8percentoftotalimports ofcapital goods; eligible imports grewprogressively
by38percenttoUS$167 million. Forthisthree-year period, thevalue represented bytheincentive
(i.e., forgone fiscal revenue) rosebythesame rate(38percent) andtotalled US$62.9 million.
28. Since 1991, ithasbeenpossible toimport aspecific listofcapital goods (including transport
equipment) temporarily (upto5years) withpartial payment ofduties. Thelatest listcomprises
803ten-digit NANDINA items representing 11percentofalltariff lines.35
29. In1991sub-regional provisions wereadopted withtheobjective ofstreamlining theduty-free
treatment régimes oftheAndean Group.36Members committed themselves nottogrant anynew
concessional treatment from 31March 1991, andtoabolish by31December 1991 anyexemptions
thatwould weaken orwereweakening sub-regional tariffundertakings. Exemptions under international
treaties previously accepted bythemember country were excluded from thisobligation.
30. Andean Group Decision 370allows foritems thatarenotproduced intheAndean sub-region
tobenefit froma5percenttariff, while rawmaterials andcapital goods enjoy azerorate.37Thelist
ofitems notproduced inthesub-region waspublished bytheBoard oftheCartagena Agreement (Junta
delAcuerdo deCartagena ,JUNAC) inFebruary 1996.38Under thisprovision, Colombia hasgranted
aone-year dutyexemption forimports ofcapital goods forthetextile andclothing sector.
31. Under theAndean Group common automotive policy, since 1993 imports ofcompletely
knocked-down motor vehicle kitsforassembly inColombia havebeendutiable at3percent. This
provision isinitially applicable untilDecember 1998, subject toextension. Theconcession iscontingent
onmeeting localorsub-regional content requirements (section (xvii) below andChapter V).
(iii) Tariff quotas (other thanUruguay Round commitments)
32. Under thetrade agreements maintained withLAIA partners suchasArgentina andBrazil,
preferential tariff treatment forcertain items isassured onlyforspecific quantities (Chapter II).
Concessional treatment forgoods under theSIEX régime issubject toindividual quota limitations for
eachbeneficiary, expressed interms ofU.S. dollars. Quotas forrawmaterials andinputs areset
33INCOMEXResolution2386,titledunifyingmeasuresrelatingtotheSpecialSystemsforImportsandExports
andestablishing other provisions (pormedio delacualseunifican lasmedidas relacionadas conlosSistemas
Especiales deImportación-Exportación ysedictan otras disposiciones ),25November 1992. More information
ontheoperation oftheVallejo Plan andSIEX programmes canbefound inthefirstTPR report onColombia
(GATT (1990) aswellasinseveral sections ((2)(iii), (vi),(xi)and,(4)(viii) and(xiii)) ofthepresent report.
34Notification totheWTO Committee onSubsidies andCountervailing Measures (G/SCM/N/3/COL or
L/7611/Add.11, 3August 1995).
35Customs Resolution 0248, 19January 1995.
36Decision282,HarmonizationofTariffExemptions(ArmonizacióndeFranquiciasArancelarias),January1991.
37Article 4,Andean Group Decision 370.
38JUNAC Resolution 393, 15February 1996.Colombia WT/TPR/S/18
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annually (calendar year) andarerenewable when fullyutilized. Forcapital goods, aglobal quota is
setforadetermined period, except thatcapital goods imported foruseintheproduction offlowers
arenotsubject totariff quota restraints.39
(iv) Variable import levies andtheAndean Price Band system
33. Variable levies, affecting imports ofcertain agricultural items originating incountries other
thanthose oftheAndean Group, werefirstintroduced in1991inthecontext ofavariable tariff (Sistema
deAranceles Variables )operated through anational price bandsystem.40Inearly 1995 thenational
system wasreplaced bytheAndean Price Bandsystem (Sistema Andino deFranjas dePrecios ),adopted
inNovember 1994.
34. Thenumberofproductssubjecttothesystemincreasedsteadilyfrom1991to1995.Considering
bothreference items (productos dereferencia) ,derivatives (vinculados) andsubstitutes, itrosefrom
71items under theoriginal Decree tosome 118items.41Between 1991 andAugust 1993, variable
levies werebased onofficial prices, setonaweekly basis, andexpressed asspecific ratesinU.S.dollars
pertonne; from thenuntiltheadoption oftheAndean Price Band, advalorem rateswere used.
35. TheAndean Price Band system, implemented byColombia since1April 1995, covers certain
basicagriculturalitemsandassociatedproducts.42UnderArticle4ofDecision371,theproductscovered
bythescheme aredivided into: 13"markers" (productos marcadores )whose international prices
constitute thebasis forthecalculation oftheprice bands, and138derivatives orsubstitutes ofthe
"markers" (corresponding toabout 2percentofalltarifflines) which areincluded soastoavoid any
effects oftrade diversion orimbalance inthepattern ofeffective protection.43
36. Themethods forcalculating Andean Price Band levies areshown inTable IV.1. Levies are
nowexpressed intheformofadditional advalorem ratesandincertain cases tariffcutsorsuspensions
areforeseen. Thecalculation ofthelevyonanassociated product isbased onthatcharged forits
specified "marker" product (e.g., thelevyonhamimports maybesome percentage ofthatonpork
meat).44Levies mayrange between 0and100percent.
39Articles 8and11ofINCOMEX Resolution 2386, 25November 1992.
40Decree 672of1991.
41Theitems subject tothesystem asofmid-1991 included wheat, maize, rice, sorghum, wheat andother
cereal flours, barley, starches, wheat gluten, soybeans, colza seeds, oilseeds andflour thereof, most vegetable
oils,certain types ofsugar, wastes andresidues offoodmanufacturing (pellets, oilcakes) ofvegetable oranimal
origin, anddextrine (GATT document L/6918, 22October 1991).
42Andean Group Decision 371, 26November 1994; Board oftheCartagena Agreement (JUNAC)
Resolution 360,2February 1995; andimplementing Decree 547,31March 1995. Article 8ofAndean Group
Decision 370, required thatthelevel ofvariable import levies applied byindividual Andean Group countries
beharmonized atsub-regional level by1February 1995 atlatest.
43Thecategory of"marker" products comprises 13items: rice,barley, yellow maize, white maize, soybeans,
wheat, rawsoybean oil,rawpalm oil,sugar, milk, poultry meat andpork meat. Associated products refers
to138eight-digit NANDINA items andincludes awide range ofitems including butter, milk, cream, cheeses,
ham, oilseeds, vegetable oils,oilcakes andseveral flours (Annexes 1to4,Andean Group Decision 371).
44Chapters VandVIofAndean Group Decision 371.WT/TPR/S/18
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Table IV.1
Method forthecalculation ofthevariable import levy(Andean Price Band System)
"Marker" products
Reference price <Floor price Reference price =Floor orCeiling price
or
Reference price between Floor and
Ceiling pricesReference price >Ceiling pricea
Levy atpercentrateof:[(Reference
price -Floor price) /Reference
price] X100Nolevy(including theassociated
product)Import tariff percentreduction by:
[(Reference price -Ceiling
price) /Reference price] X100
Associated products
Import tariff of"marker"
product <tariff ofassociated productSame import tariff asthatofthe
"marker" productImport tariff of"marker"
product >tariff ofassociated product
Levy atthehighest rateobtained by
oneofthefollowing formulas:
-levyonthe"marker" X(import tariff
ofthe"marker" /tariff ofthe
associated)
-levyonthe"marker" -[tariff ofthe
associated -tariff ofthe"marker"]Same levyasforthe"marker" product Levy atthelowest rateobtained byone
ofthefollowing formulas:
-levyonthe"marker" X(import tariff
ofthe"marker" /tariff ofthe
associated)
-levyonthe"marker" -[tariff ofthe
associated -tariff ofthe"marker"]
a Inthiscase, theresult represents thereduction rateapplicable totheimport tariff. Thetariff ontheassociated product isalso
subject toacutatthesame level.
Source: Chapters VandVIofAndean Group Decision 371.
37. According toAndean Group Decision 371,Members mayadjust thelevies whenever there
are"special" distortions inworld prices ofassociated products. Intotal, thelevies, including any
adjustment, maynotexceed Uruguay Round bindings.45Under certain conditions, levies maybeapplied
onimports fromother Andean Group members; forexample when thesemembers change ratesbelow
thecommon external tariff andimports from them cause distortions incompetition ordisturbances
indomestic production.
38. Inpractice, between 1994, when thevariable levies werejustexpressed aspercentages, and
April 1995, their average level ranged from zero(soybean oil,palm oil,1995) to75percent
(milk, 1994) percent; maximum ratesaffected milk(94percent,1994), poultry (90percent,1995)
andswine (65percent,1995). Between 1991and1995, imports ofvirtually allitems (excluding palm
oil)subject tovariable import levies recorded overall growth ratesinvalue from15percent(barley)
to936percent(refined sugar). From 1992 to1995, theshare ofimports ofthese items intotal
agricultural imports declined by17percenttoabout 41percent; in1995, imports ofthese items
stood atUS$547 million, about twothirds ofwhich consisted ofwheat andmaize.
39. TheAndean Price Band hasbeendiscussed intheWTO Working Group fortheAccession
ofEcuador andtheTPRB meeting onVenezuela 'strade policies andpractices.46TheColombian
45Article 15andAnnex 5.1ofAndean Group Decision 371.
46AttheWorking Group fortheAccession ofEcuador totheWTO, certain participants noted thattheAndean
Price Band wasagainst theletter andthespirit oftheFinal ActoftheUruguay Round. Ecuador undertook to
gradually eliminate thesystem within aseven-year period inaccordance withthetimetable annexed toitsProtocol
ofAccession (WT/L/77, 14July1995).Colombia WT/TPR/S/18
Page 51
authorities areoftheviewthattheAndean PriceBandsystem neither affects tariffbinding commitments
norrestricts imports ofagricultural goods. Theauthorities counter concerns overthepredictability
andtransparency ofmarket access conditions under thissystem, bynoting thatitsparameters, which
aredetermined fourmonths prior totheirentry inforce, arecalculated andadjusted onthebasis of
international prices published bywell-recognized sources (e.g., Reuters). Transparency isensured
bytheJUNAC, asub-regional institution, which monitors andcommunicates price adjustments.
Moreover amendments totheAndean Price Band system canonlybeagreed atsub-regional level.
(v) Import surcharges andsurtaxes
40. Asdiscussed earlier (section (ii)(b)), theimport tax(surcharge), introduced inDecember 1986,
wasincorporated inthetariff in1992 andnotified totheGATT.47Itsratefellfrom 16percentin
1990 to8and5percentin1991.48Imports ofLAIA origin were notaffected. Other exemptions
included temporary imports; imports under theSIEX andVallejo Plan;imports bypublic entities;
imports fortheFreePortofSanAndrés yProvidencia.49
(vi) Other levies andcharges
41. Since 1994, inspection feeslevied byspecialized companies (sections (i)and(vii)) maynot
exceed 1percentofthef.o.b. value ofthegoods, withaminimum rateofUS$200.50Portfeesare
setbytheports concerned butdonotdistinguish between imports andexports. Private warehousing
feesarelevied atamonthly rateof4percentofthec.i.f. value.
42. Thevalue-added tax(Impuesto alValor Agregado )orVAT islevied atageneral rateof
16percentongoods andservices.51TheVAT, firstintroduced in1983, islevied onthec.i.f. import
value. Different ratesareapplied tocertain transport equipment inthefollowing manner:
-20percent: domestically assembled orbuiltpassenger vehicles upto1,400 cc(including
theirchassis), motorcycles (andsidecars) ofanengine capacity ofmore than185ccandleisure
andsportboats; merchandise transport vehicles upto10,000 pounds (including theirchassis);
-35percent: imported passenger vehicles upto1,400 cc(including theirchassis) motorcycles
(andsidecars),leisureandsportboats;passengermotorvehicleswithengineofcylindercapacity
higher than1,400 andupto1,800 cc(including theirchassis);
47GATT document L/6988, 12March 1992; Decrees 1689 of1991; 193, 31January 1992; and,255,
11February 1992.
48Decree 2097, 6September 1991 (GATT document L/6918, 22October 1991).
49GATT (1990); Dun&Bradstreet Information Services (1994).
50Article 6ofDecree 2531, 16November 1994; Article 25ofCustoms Resolution 5624, 9December 1994.
51AsdiscussedinChapterI(taxreformunderLaw49),in1990theVATratewasraisedfrom10to12percent
andinJanuary 1993 to14percent. Additional revenue from theJanuary 1996 increase is,inter alia,aimed
atsupportingindebtedcoffeegrowers(LatinAmericanWeek lyReport,23November1995,p.539;LatinAmerican
Regional Reports-Andean Group, 21December 1995; ElTiempo ,31January 1996; Article 14ofLaw223,
20December 1995).WT/TPR/S/18
Page 52Trade Policy Review
-60percent: imported motor vehicles ofavalue equal orabove US$35,000 (including import
duties);
-45percent: other types ofimported motor vehicles notfalling inother categories.52
43. Exemption fromVAT applies toalistofitems including mostagricultural products, minerals,
chemicals, crude petroleum, electricity, fertilizers, insecticides, unprocessed leather, wood, natural
andman-made fibres, certain metal articles, rawmaterials forvaccines, farmmachinery (including
tyresfortractors), wireforfencing, certain school andcleaning material, propane gas,zincfortiles,
electric power generators, packing material andfoodbags, machinery forpencil production, pencils,
cigarettes, matches, brooms, optical lenses (including contact lenses), medical articles (including
wheelchairs), salestotourists inborder zones andresearch equipment imported byuniversities. Raw
materials andinputs covered bytheSIEX régime areexempt from alllevies andcharges affecting
imports, including theVAT.53Since July1996, imported machinery orequipment forrecycling of
waste orgarbage andwater treatment aswellasanyotherapparatus usedforimproving theenvironment,
havebeenexempt from VAT. Table IV.2illustrates thestructure ofalltaxes andcharges affecting
imports intoColombia ofthose representative products: milled rice,laminated steelandpassenger
cars.
44. Consumption taxes (impuestos alconsumo) arelevied oncigarettes, manufactured tobacco,
beer, softormixed drinks, wineandother liquor. Fordomestic products thetaxbaseisthewholesale
distributionprice(preciodedistribución);forimports,itisthec.i.f.valuepluscustomsduties,increased
bya30percentmarketing margin. Theratesofconsumption taxare:
-60percentoncigarettes andtobacco (increased in1996 from 45percentandtoberaised
further to65percentin1998);
-20percentonmixed beverages;
-48percentonbeers andsiphon bottles;
-ratesbetween 20and40percentonwineandother liquors, varying according toalcoholic
content.
45. Since 1990IVA'simportance asataxcollection instrument hassignificantly grown; itsshare
inthetotalamount collected fromindirect taxeshasrisenby46percentto70percentorUS$4.2 billion
(Chart IV.4). Theshare offiscal revenue fromforeign trade(i.e.,customs duties andimport surcharges)
hasdropped markedly in1992, duetotheelimination ofimport surcharges; sincethenithasremained
relatively stable. Invalue terms, income from gasoline taxes hasalmost doubled.
52Article 471ofLaw223, 20December 1995.
53Article 6ofINCOMEX Resolution 2386, 25November 1992.Colombia WT/TPR/S/18
Page 53
Table IV.2
Structure ofcharges onimports ofselected products, 1996
Milled rice Laminated steel Passenger cara
Description Rate
percentValue Rate
percentValue Rate
percentValue
1 Value f.o.b 100.0 100.0 100.0
2 Freight 10.0 10.0 10.0 10.0 10.0 10.0
3 Insurance 5.0 5.0 5.0 5.0 5.0 5.0
4 Value c.i.f. 115.0 115.0 115.0
5 Import duty(onc.i.f. value) 20.0 23.0 10.0 11.5 35.0 40.2
6 Variable import levy ... ... n.a. n.a. n.a. n.a.
7 Inspection fees(onf.o.b. value) 1.0 1.0 1.0 1.0 1.0 1.0
8 Other charges (customs agent,
portfees, consular fees, etc.)... ... ... ... ... ...
9 Final value ofimport 139.0 127.5 156.2
10 VAT sales tax(onc.i.fvalue) n.a n.a. 16.0 18.4 35.0 40.2
11 Wholesale costinColombia 139.0 145.9 196.5
n.a. Notapplicable.
... Notavailable.
a Calculations forapassenger carwith1,300 ccengine andac.i.f. value oflessthanUS$22,000.
Source: WTO Secretariat estimates based ondatasupplied bytheGovernment ofColombia.
WT/TPR/S/18
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(vii) Preshipment inspection
46. In1994preshipment inspection wasintroduced withtheobjective ofimproving efficiency and
flexibility incustoms procedures. Legislation inthisarea,inforceasofJuly1995, is,interalia,aimed
atimplementing theWTO Agreement onPreshipment Inspection.54
47. While preshipment inspection isoptional, theGovernment hasreserved therighttomake it
compulsory forspecific "sensitive" items (bienes sensibles )which aredetermined bytheHigher Council
ofForeign Trade whenever necessary; orinothercases.55In1995, morethan303items, corresponding
tosome than4percentoftariff lines, weresubject tocompulsory inspection.56Allimports subject
toanti-dumping orcountervailing measures must beaccompanied byaninspection certificate.57In
certain cases inspection iswaived, including imports bythecentral Government orregional andlocal
authorities, imports ofsemi-manufactures forexport processing under theSIEX régime orgoods valued
atlessthanUS$5,000.58
48. Inspection enterprises mustmeeteconomic, operational andtechnical criteria toberegistered
andauthorized byDIAN tooperate; aguarantee mustbedeposited withtheCustoms.59Currently,
twospecializedenterprises,theBivacdeColombia(BureauVeritas)andInchcapeTestingServices(ITS)
undertake inspection ofimported goods.60
(viii) Customs valuation
49. Following anAndean Group Decision toapply theTokyo Round Agreement onCustoms
Valuation onadefactobasis, Colombia signed theAgreement on2August 1993andstarted applying
itonaprovisional basis.61Inaccepting theWTO Agreements, Colombia hasinvoked thedelayed
application oftheCustoms Valuation Agreement andofthe"computed value" method ofvaluation.
Andean Group Decision 378of19June1995 adopted theWTO Agreement onCustoms Valuation
fortheGroup asawhole; inmid-1996, Colombia waspreparing theregulatory framework required
fortheimplementation oftheWTO Agreement andthisDecision.
54Decree 2531, 16November 1994 andDecree 861, 26May 1995, notified inWTO document
G/PSI/N/1/Add.2, 26July1995.
55Article 2ofDecree 2531; Article 8ofCustoms Resolution 5624, 9December 1994.
56These items were lastly listed inDecree 1574, 18September 1995.
57Decree 861, 26May 1995. Imports from Panama were alsosubject tothisobligation until mid-1996
(Decree 799of1996).
58Decree 1131, 30June 1995.
59Articles 2and5ofCustoms Resolution 5624, 9December 1994. Theamount oftheguarantee isinitially
setatUS$1 million. Asfrom 1January 1996, itisadjusted at0.1percentofthef.o.b. value ofimports which
have been inspected bythecompany during theprevious year.
60Bureau ofNational Affairs (1995).
61GATT documents VAL/M/29, 6July1992; VAL/M/31, 28July1993; VAL/M/33, 14September 1994;
VAL/51,12January1994;VAL/W/62,4November1994.AndeanGroupDecision326,22October1992adopted
byDecree 2615, 23December 1993.Colombia WT/TPR/S/18
Page 55
50. Asnoted earlier, since January 1993, importers havebeenresponsible forcorrect declaration
ofthevalue ofimported goods. Customs authorities can,however, verify anydeclaration atthepoint
ofentry orwithin twoyears ofimportation.
(ix) Reference andminimum import prices
(a) Andean Price Band System
51. TheAndean Price Band system establishes reference, floor andceiling prices for"marker"
agricultural products (section (iv)). Theformula forcalculating c.i.f. floor (precio piso) andceiling
(precio techo) pricesis:five-yearmonthlyaverageoff.o.b.exportprices(inU.S.dollars)plusestimated
insurance andfreight, minus thestandard deviation ofthehistorical series (floor) orplusthestandard
deviation (ceiling), multiplied byastandard adjustment coefficient of0.5.62Floor andceiling prices
werefirstestablished inFebruary 1995 fortheperiod 1April 1995-31 March 1996; thefirstannual
adjustment wasmade inDecember 1995, applying totheperiod 1April 1996-31 March 1997. So
far,theprice variations allowed bytheAndean Price Band haveranged from 6.5to24percent,
depending ontheproduct; thebandhasbeenbroader (i.e.,more than14percent)for"marker" items
suchasrice,sugar, wheat, soybean oil,palm oilandporkmeat(Table IV.3).
Table IV.3
Andean Price Band: floor andceiling prices, 1995 to1997
(US$ pertonne)
1April 1995-31 March 1996 1April 1996-31 March 1997
"Marker" products c.i.ffloor price c.i.f. ceiling price c.i.f. floor price c.if.ceiling price
Crude palm oil 401 444 460 571
Crude soybean oil 479 523 510 594
White rice 328 373 322 369
White sugar 377 462 364 407
Rawsugar 282 344 272 307
Barley 142 154 143 153
Fullcream milk 2,090 2,310 2,059 2,213
Fullcream milk(Colombia andEcuador) 2,200 2,420 2,125 2,279
Fullcream milk(Venezuela) 1,980 2,200 1,993 2,147
Yellow maize 146 158 146 156
Yellow maize (Venezuela) 134 144 135 145
White maize 154 166 154 166
Soybeans 263 280 260 277
Wheat 164 188 169 188
Poultry meat 1,337 1,452 1,319 1,405
Pork meat 1,806 2,169 1,668 1,971
Pork meat (Venezuela) 1,624 1,987 1,537 1,840
Source: Resolutions 360and390oftheAndean Group.
62Thisadjustment coefficient, contained inAnnex 4ofAndean Group Decision 371,issetatauniform rate
forall"marker" products, except forsugar andmilkinpowder forwhich itissetatzero. Thecoefficient for
yellow maize isnegative andistoincrease progressively from -1to-0.5byApril 2001 atthelatest.WT/TPR/S/18
Page 56Trade Policy Review
52. Reference prices (precios dereferencia )constitute thebasis forcalculating import duties and
levies on"marker" products, orgranting tariff cutsorsuspensions. Areference price consists ofthe
average international price quotations (daily, weekly or15-day) recorded overthe15daysprior to
arrival atthedestination.63Thereference price listisissued two-weekly basis byJUNAC.
(b) Other
53. Since 1992, sub-regional provisions haveallowed fortheintroduction ofminimum official
prices (precios mínimos oficiales )orreference prices onatransitional andlimited basis.64These were
lastdefined in1994 atthenational levelandaremainly intended tofightunder-invoicing.65Official
prices arecompulsory andsetthethreshold foradeclared value tobeaccepted. Reference prices are
published inacircular ofDIAN forindicative purposes.66
54. InColombia themethodology usedforestablishing suchprices waselaborated in1975bythe
National Council ofCustoms Policy (Consejo Nacional dePolítica Aduanera ),anadvisory body to
theMinistry ofFinance atthattime; since December 1993, official andreference prices havebeen
setbytheCustoms. Factors suchasimport growth, price dispersion bycountry oforigin andthe
difference between thedeclared andworld price, areexamined. Average minimum orreference prices
fortextile items arefixedafterconsulting theU.S.National Trade DataBank (NTDB) database which
registers allf.o.b. import prices intheUnited States.67Inthecaseofmotor vehicles, inprinciple the
price listsissued byproducers aretaken intoconsideration. Thereference listsoftheAndean Price
Band system (foritsreference prices of"marker" items) oritsmethodology (derivatives) areusedfor
agricultural items.68
55. Since August 1993, agricultural items, almost allsubject totheAndean Price Band system
havebeensubject tominimum official prices forcustoms valuation purposes; atpresent 13ten-digit
NANDINA items areaffected byreference prices and40byofficial prices which maybehigher than
minimal levels setunder theAndean PriceBandsystem.69Minimum import prices onavarying number
oftextile items (94ten-digit NANDINA items fortheperiod 16January to16April 1996) areadjusted
63Article 9,Andean Group Decision 371.
64Article 2ofAndean Group Decision 326, 22October 1992.
65Customs Resolution 0932, 10March 1994.
66These should notbeconfused withcompulsory reference prices setinthecontext oftheAndean Price Band
System.
67TheNTDB isacomprehensive database oftheUnited States Department ofCommerce, International Trade
Administration.
68Decree 547, 31March 1995.
69These include: certain bovine andpoultry meat, cheese, beans, certain wheat types, wheat andsoybean
flour, paddy rice, certain oilseeds (sunflower, colza), fatsandgrease, certain vegetable oils,soybean oilcake
andfrozen orange juice (Customs Resolution 3198, 30May 1996). Thereference price onCicolac atypeof
cheese usedasaninput byalocalindustry, wasabolished inMarch 1996 toallow thefirmtooperate andpreserve
jobs(ElTiempo ,1March 1996).Colombia WT/TPR/S/18
Page 57
every three months.70Minimum official prices formotor vehicles werefirstintroduced in1975. In
December 1995, theywereinforce foralarge number ofEuropean, Japanese andAmerican models,
including some made inLatin American countries.71These prices weresetfor1996 models, updating
the1995 price list,andthose fornewmodels areadjusted every three months.
(x) Import prohibitions
56. Atpresent Colombia operates import prohibitions fortheprotection ofhuman health, animal
andplantlife,public morals, theenvironment oressential security interests incompliance withnational
legislation orinternational commitments.72
57. Since 15January 1991, imports ofusedmotor vehicles havebeen"temporarily restricted",
while imports ofusedmotorcycles (including theirusedaccessories andparts), andusedautoparts and
spare partsforallvehicles under NANDINA Chapter 87havebeen"restricted" since September and
May1995, respectively.73Therestriction relating tousedautoparts wasadopted inthecontext of
theentry intoforce oftheComplementarity Agreement intheAutomotive Sector (Convenio de
Complementación delSector Automotor )(seesections (ii)(e), (xvii), (xviii) andChapter V),butalso
forpublic security reasons. Therestriction onusedmotorcycles andtheirpartswasintroduced, upon
request oftheassociation ofdomestic metal items producers, FEDEMETAL (Federación Colombiana
deIndustrias Metalúrgicas) ,withaviewtoprotecting thelocalindustry. Thedecision on"restricting"
imports ofusedmotor vehicles wastaken forsimilar reasons.
58. TheImportsCommittee(ComitédeImportaciones)ofINCOMEX,previouslycalledtheImports
Board (Junta deImportaciones ),establishes prohibitions orrestrictions inlinewithpolicy guidelines
setbytheGovernment ortheHigher Council ofForeign Trade. Itsdecisions areissued intheform
ofCirculars which arepublished intheGazette oftheMinistry ofForeign Trade, posted inINCOMEX,
orsenttoprivate publishers ordirectly toimporters.
70Customs Resolution 8971, 29December 1995.
71More specifically, thismeasure concerns thefollowing vehicles: Brazilian (Volkswagen), French (Citroen,
Peugeot),German(BMW,Porsche),Japanese(Daihatsu,Mitsubishi,Nissan),Spanish(SEAT),UnitedStates(Ford,
Chrysler, Dodge, Honda, Volkswagen) andVenezuelan -built (FIAT, Ford) (Customs Resolution 8792,
21December 1995).
72Forexample, Article 81oftheConstitution prohibits theimportation andproduction ofchemical, biological
andnuclear weapons aswellasentry ofnuclear residues andtoxic waste. Commitments under international
conventions prohibiting production and/or trading ofcertain items onenvironmental grounds arediscussed in
sections(IV)(3)(v)and(4)(viii).Asfrom1990,imports,productionandmarketingofwartoys(juguetesbélicos)
isprohibited(Law18,22January1990).Otherprohibitionsincludehabit-formingdrugsandpornographicmaterial.
73Imports Committee Act6,27November 1993 and External Circular SOI091 ofINCOMEX,
29December 1993 (used vehicles); Imports Committee Act2,2May 1995 (used parts); Imports Committee
Act5,30August 1995 (used motorcycles including used parts etc.).WT/TPR/S/18
Page 58Trade Policy Review
(xi) Import licensing
59. Until theentry intoforce oftheWTO Agreements, Colombia maintained observer status in
theAgreement onImport Licensing Procedures (Chapter II).Colombia metitsWTO notification
obligations inJanuary 1996.74
60. Automatic import licensing isoperated through theimport registration procedure. Asat
November 1995, 101ten-digit NANDINA items (or1.4percentoftotaltariff lines) weresubject to
priorlicensingrequirements(régimendelicenciaprevia),principallyforenvironmentalhealthorsecurity
reasons; thiscompares to3,090 lines in1989. Import licensing maintained byColombia for
balance-of-payments reasons wasabolished in1992andColombia disinvoked Article XVIII:B ofthe
GATT.75Remaining licensing covers poultry parts andoffal, certain chemicals used incocaine
production, narcotics, medicines, blood components, agri-chemicals, ammonium nitrate, explosives,
fireworks, weapons andmunitions, armoured vehicles andwarboats, rubber items (e.g., usedor
reconditioned tyres), andcertain usedtextile andclothing items.
61. Despite "tariffication" commitments, under recently enacted legislation, someagricultural items
aresubject topriorimport licensing operated ondomestic absorption/self-sufficiency grounds.76The
Ministry ofAgriculture isrequired toapprove (visto bueno) thegranting ofprior import licences for
64ten-digit NANDINA agricultural items, including poultry meat, wheat, malting barley, maize, rice,
sorghum, wheat flour, starches, oilseeds, soybeans, soybean mealandoil,stearic acid,other animal
andvegetable oilsandfats,certain types offoodforanimals. Approval iscontingent onthefulfilment
ofcertaincriteria,dependingontheproduct(TableIV.4),includingcompliancewithdomesticabsorption
requirements (sections (xiv), (xvii) andChapter V).IntheWTO Committee onAgriculture in
November 1995, certain Members expressed concern andsought explanations onthisconditionality.77
Items originating fromAndean Group countries andChile arenotsubject tothistypeoflicensing.78
62. Between 1991 and1995 theshare ofitems subject toprior import licensing dropped by
47percentto6.7percentoftotalimports. Inthesame period, theshare ofagricultural items intotal
imports requiring prior licensing rosefrom 29percenttoapeakof99percentin1994; itthenfell
to68percent.79In1995, theMinistry ofAgriculture approved 96percentoftheapplications submitted
foritsvistobueno .Virtually allapplications relating toimports ofpoultry andricewere refused.
Themainreason fortheirrejection (82percentofthecases) hasbeenthenormal situation ofdomestic
supply.
74WTOdocumentsG/LIC/N/1/COL/1,22February1996;G/LIC/N/3/COL/1,22February1996.Colombia's
previous notification dated back to1989 (GATT document L/5640/Add.44, 24October 1989).
75Imports ofthese items originating intheAndean Group countries arenotsubject toimport licensing
(INCOMEX (1995), p.28).
76Relevant provisions arelaiddown in:Legislative Decree 444of1967; Law7aof1991; Law101and
Resolution 012oftheForeign Trade Council, 1993; Decrees 1279and2439, 2November 1994; Resolutions 49
and756oftheMinistry ofAgriculture, 1994; Resolution 001oftheHigher Council ofForeign Trade, and
Resolutions 045and362oftheMinistry ofAgriculture, 1995.
77These included Australia, theEU,Japan, Switzerland, theUnited States andUruguay (WTO document
G/AG/R/4, 19January 1996).
78INCOMEX (1995), p.33.
79Data supplied byINCOMEX.Colombia WT/TPR/S/18
Page 59
Table IV.4
Criteria forimport licence approval
Products Absorption
ofdomestic
productionCompliance
withreference
price
requirementsImporter
must bea
processor of
agricultural
rawmaterialsMethod for
licence
allocationPermit validity/
authority
Certain types ofwheat
(including durum wheat) and
meslin.X X X First-come-
first-served
basis or
simultaneously
onaprorata
basis.Onecropsemester
(from 1December
to31Mayofthe
following yearand
from 1Juneto
30November)
licence issued by
theMinistry of
Agriculture.
Barley, white maize, rice
(husked), malt, sorghum,
certain starches; flours of
wheat, meslin andmaize;
wheat groats, meal and
pellets.X No X Idem Idem
Yellow maize andwheat for
forage.X
(Domestic
production
ofsorghum)No X Idem Idem
Certain oilseeds
andoleaginous fruits
(including theirflours or
meals andoils); certain
animal fatsandoils; stearic
andoleic acid.X
(Domestic
production of
African palm
oil)No X Idem Idem
Poultry meat notcutin
pieces, chilled orfrozen;
rice(semi-milled orwholly
milled, broken) dogorcat
food sweetened andother
foodpreparations.X No No Idem Idem
Poultry cuts, fresh orchilled. Criterion of
protecting
domestic
industry.No No No Licence approved by
theImport Board of
INCOMEX.
Source: G/AG/N/COL/1, 25September 1995.
63. Thedelivery ofpriorimport licences forcertain goods (e.g., used, defective, waste) issubject
toapproval bytheImports Committee. Thisprocedure which takes anaverage ofthreedays, consists
ofdetermining whether there isaspecific needtoimport inthelightofthesituation inthedomestic
market (i.e., adequate andcompetitive supplies from domestic producers) andtheeconomic
"feasibility" (including allimport costs) oftheimport.80
80INCOMEX (1995), p.11and25.WT/TPR/S/18
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64. Allprior import licences areissued byINCOMEX following theapproval oftheImports
Committee. Generally, licences arevalidforsixmonths, apartfromagricultural andlivestock products
(three months) andcapital goods (oneyear). Certain items orsubstances alsorequire priorauthorization
from theMinistries ofHealth orAgriculture. Since 1995, import licences forchemicals (precursor
substances) fornarcotics production havebeenissued onthebasis ofneeds certificates (Certificados
decarencia)andamonthlyquotaauthorizedbytheNationalDirectorateofNarcotics(DirecciónNacional
deEstupefacientes) foreachimporter; suchlicences cannot beextended.
65. Imports ofrawmaterials andinputs covered bytheSIEX régime areexcluded from prior
licensing requirements, except forused machinery andequipment (including transport and
telecommunications material).81TheSIEX Evaluation Committee (Comité deEvaluación deSistemas
Especiales deImportación-Exportación )ofINCOMEX authorizes imports ofthese items.
(xii) State trading
66. InJanuary 1996 Colombia submitted totheWTO anotification onState-trading enterprises
subject toArticle XVII provisions, covering departmental monopolies fordistilled spirits.82Between
1990 and1995 theshare ofallpublic sector imports declined steadily from 17to5percentofthe
total(Chart IV.5). Theitems concerned weremainly inputs andcapital goods formanufacturing, fuels
andlubricants andtransport equipment.
67. Theactivities ofState enterprises involved inproduction andtrade (empresas industriales y
comerciales delEstado )andthose ofmixed-ownership companies (sociedades deeconomía mixta)are
governed byframework legislation dating back tothe1960s and1970s.83These enterprises are
established bycase-specific lawwhich, inthecaseofmixed firms, indicates thedegree ofState
participation andprivileges. When Stateparticipation exceeds 90percentormore ofthecapital, the
firmisconsidered aswholly State-owned. Table IV.5, based oninformation supplied bytheColombian
authorities, isacautious attempt toindicate therange ofState enterprises inalltrade-related sectors
oftheeconomy in1996. Apart frommonopolies suchasECOPETROL, littleinformation isavailable
about thescale ofoperation ofsuchenterprises, which insome cases isconsiderable.84
81Articles 6and19ofINCOMEX Resolution 2386, 25November 1992.
82WTO document G/STR/N/1/COL, 12January 1996 containing acommunication dated 30June 1995. In
thecontext oftheWorking Party onState Trading Enterprises, theUnited States sought, inter alia,information
onthevalue oftrade ofthefirms notified (G/STR/W/10, 15March 1996).
83Decrees 1050 and3130 of1968; Decree 130of1976.
84Forexample,inDecemb er1995,theStateInstituteofIndustrialDevelopment(InstitutodeFomentoIndustrial,
IFI)wasashareholder ofupto100percent(mostly between 20and70percent), in34firms (ofwhich 19were
operational and5tobeliquidated); these operated mainly insectors such asmanufacturing (food, paper,
chemicals), financial services andconstruction (IFI, 1996, p.35).Colombia WT/TPR/S/18
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WT/TPR/S/18
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Table IV.5
State enterprises inColombia, 1996
Firm ActivitySituation inprivatization
programme
GOODS
Agriculture
Instituto deMercadeo Agropecuario (IDEMA) Marketing ofagricultural products Noplans
Empresa deComercialización deProductos
Perecederos (EMCOPER)Trading ofperishable agricultural
productsInliquidation process since 1992
Empresa Colombiana deProductos
Veterinarios (VECOL)aProduction andtrading ofveterinary
productsFinal liquidation inJanuary 1996 and
replacement byanewcompany
(Empresa Promotora deProyectos
Agroindustriales )largely bythe
regional Government of
Cundinamarca
Corporación deAbastos deBogotá
(CORABASTOS)aDistribution ofagricultural products Final liquidation 31December 1996
Central deAbastos deCali(CAVASA) Distribution ofagricultural products Final liquidation 31December 1996
Central deAbastos deBarranquilla Distribution ofagricultural products Final liquidation 31December 1996
Central deAbastos deMedellín Distribution ofagricultural products Final liquidation 31December 1996
Mining andenergy
Empresa Colombiana dePetróleos
(ECOPETROL)Production, refining andtransportation
ofpetroleumNoplans
Terpel Antioquia Distribution ofgasoline
Corporación Eléctrica delaCosta Atlántica
(CORELCA)Generation anddistribution ofelectric
energyNoplans
Interconexión Eléctrica (ISA) Operation ofmajor electric power
stationsNoplans
Empresa deEnergía Eléctrica deBogotá Generation anddistribution ofelectric
energyNoplans
Generación yComercialización deEnergía SA
ESP-ISAGENGeneration, transmission and
distribution ofelectric energy55to60percentofhydro-electric
andthermal power stations
Instituto Colombiano deEnergía Eléctrica
(ICEL)Generation, transmission and
distribution ofelectric energyNoplans
Empresa deEnergía delPacífico (EPSA) Generation anddistribution ofelectric
energyUpto55percent
GasNatural Gasdistribution inBogotá 60percent
Promigas Gastransportation 38percent
Invercolsa Investment ingasdistribution firms 52percent
Minerales deColombia (MINERALCO) Administration ofresources of
emeralds, copper, gold, etc....
Colombiana deMinería (COLMINAS) Mining Noplans
Carbones deColombia (CARBOCOL) Exploration, mining, processing and
marketing ofcoalNoplans
Empresa Colombiana deCarbón
(ECOCARBON)Promotion anddevelopment ofthecoal
industryNoplans
Compañía deCarbones del
Oriente (CARBORIENTE)Exploitation andprocessing ofcoal Noplans
Cerro Matoso SA Ferro-nickel plant 48percent
Table IV.5 (cont'd)Colombia WT/TPR/S/18
Page 63
Firm ActivitySituation inprivatization
programme
Manufacturing
Instituto deFomento Industrial (IFI) Participation inseveral firms Noplans
Regional Development Corporations
Departmental Distilleries (14) Monopoly rights fortheproduction and
marketing ofliquorsNoplans
Artesanías deColombiaaPromotion anddevelopment ofthe
handicrafts industryNoplans
Empresa Editorial delaUniversidad Nacional Publishing Noplans
Corporación delaIndustria Aeronáutica
Colombiana (CIAC)aAssembly, repair andimport ofaircraft Noplans
Industria Militar (INDUMIL) Imports, production andtrade ofarms,
ammunition andexplosivesNoplans
SERVICES
Communications
Empresa Nacional deTelecomunicaciones
(TELECOM)Telecommunications Noplans
Instituto Nacional deRadio yTelevisión
(INRAVISION)Television andradio broadcasting Noplans
Compañía deinformaciones
audiovisuales (AUDIOVISUALES)Television entertainment production Noplans
Administración Postal Nacional (ADPOSTAL) Postal services Noplans
Transport
Empresa Colombiana deVíasFérreas
(FERROVIAS)aMaintenance anddevelopment ofthe
railnetworkNoplans
Metro deMedellín Underground railtransport Noplans
Servicio Aéreo aTerritorios Nacionales
(SATENA)Airtransport Noplans
Financial andinsurance services
Banco PopularaCommercial banking 93.3percent
Banco delEstadoaBanking services Noplans
Banco Central HipotecarioaUrban housing development credit Noplans
Banco deComercio Exterior deColombia
(BANCOLDEX)aExport financing ...
Almagrario (Almacén deDepósito delIDEMA,
Caja Agraria yelBanco Ganadero)a
Banco GanaderoaFinancing livestock sector development Noplans
Banco CafeteroaCommercial lending anddevelopment
bank forrural coffee regionsNoplans
Caja deCrédito Agrario, Industrial y
Minero (Caja Agraria)aAgricultural development bank Noplans
Concasa Savings andhousing credit corporation ...
Fondo paraelFinanciamiento delSector
Agropecuario (FINAGRO)aFinancing operations foragricultural
loansNoplans
Table IV.5 (cont'd)WT/TPR/S/18
Page 64Trade Policy Review
Firm ActivitySituation inprivatization
programme
Instituto deFomento Industria (IFI) Financing theestablishment ofbasic
manufacturing activitiesNoplans
Fiduciaria LaPrevisoraaFunds management Noplans
Fiduciaria PopularaFunds management Noplans
LaPrevisora Compañía deSegurosaInsurance Noplans
Tourism andleisure
Corporación Nacional deTurismo de
Colombia (CNT)Tourism development enterprise Noplans
Hotel SanDiegoaHotel services Noplan
Promotora deVacaciones yRecreación Social
(PROSOCIAL)Promotion, establishment andfinancing
oftourism andleisure servicesNoplans
Other services
Instituto deSeguros Sociales (ISS) Management andmonitoring ofpension
fundservicesNoplans
... Notavailable.
a Mixed-ownership firm(capital participation oftheprivate andpublic sector).
Source: Government ofColombia.
68. Under theConstitution, Departments exercise autonomy intheadministration ofliquor
monopolies, covering theproduction, distribution andsalesofdistilled liquors (licores destilados ),
ethyl anddrinkable alcohols.85Revenue raised from these monopoly rights must cover health and
education expenditure oftheDepartment.86InDepartments making useofthemonopoly right, the
entry ofthese items requires apermit which isgranted afterthesigning ofacontract between the
Departmental authorities andtheimporter ordistributor.87Fourteen Departments havetheirown
distilleries which produce aguardiente (83percentoftotalvolume), rum(15percent), gin,vodka,
brandy, other liquors andindustrial alcohol. In1994, themain export markets foraguardiente were
Venezuela, theUnited States, Peru, Chile andPanama.
(xiii) Countertrade
69. Allcountertrade operations havebeenofficially suspended sinceMay1986 (Decree 1459) and
thecorresponding mechanisms have been eliminated inthecontext oftheApertura programme,
Decree 370,which provides INCOMEX withauthorization andregistration powers inthisarea,remains
inforce; however, theauthorities haveindicated thatthese powers arenotused.
85Law 14of1983.
86Article 336oftheConstitution.
87Articles 61and63ofLaw14(implementation procedures).Colombia WT/TPR/S/18
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(xiv) Standards andother technical requirements
70. Standards policies areaimed atoptimizing thequality ofgoods andservices available inthe
market aswellasimproving thecompetitiveness ofColombian products. Theformulation and
implementationofstandardsandtechnicalrequirementsarebasedontheprinciplesofnon-discrimination
andnational treatment. Theauthorities consider that,inprinciple, Colombian regulations onstandards,
sanitaryandphytosanitarymeasuresobservetheprovisionsoftherelevantWTOAgreements.However,
tocomply withthesignificant changes introduced intheconsultation andnotification procedures,
Colombia iscarrying outadministrative andlegislative changes which maynotbefinalized in1996.
(a) Standards, testing andcertification
71. Since 1992, theNational Council onStandards andQuality (Consejo Nacional deNormas
yCalidades )oftheMinistry ofEconomic Development hasapproved anannual standardization
programme, established, co-ordinated andsupervised bytheStandardization andQuality Division
(División deNormalización yCalidad) ofthesame Ministry.88TheSuperintendency ofIndustry and
Commerce (Superintendencia deIndustria yComercio ,SUPERINDUSTRIA), anautonomous technical
agency, isresponsible fortheaccreditation andsupervision ofcertification andinspection institutions
aswellasforthetesting andmeasurement laboratories. Italsoverifies compliance withcompulsory
standards andissues certificates ofconformity. These canalsobedelivered byaccredited national
institutions (e.g., ICONTEC, Corporación Colombia Internacional, Centro deInvestigaciones delas
Telecomunicaciones/CINTEL )89aswellasaccredited orrecognized organizations inthecountry oforigin
onareciprocal basis (seebelow).
72. TheColombian Institute ofTechnical Standards (Instituto Colombiano deNormas Técnicas ,
ICONTEC) isresponsible forcarrying outthenational standardization procedure, including the
elaboration ofstandards. In1995, ICONTEC wasworking outstandards andcertification requirements
relating toenvironmental protection onthebasis ofrelevant ISOprovisions.
73. Internationalstandardsorthoseelaboratedbyreliableentities(e.g.,AmericanSocietyforTesting
andMaterial/ASTM,AmericanNationalStandardsInstitute/ANSI,SocietyofAutomotiveEngineers/SAE,
American Welding Society/AWS) areusedasabasisfordeveloping Colombian technical specifications
andregulations. Nevertheless, incertain cases thesestandards havebeenconsidered unsuitable because
theyrefer either tomeasurement units notutilized inthecountry ortotesting requirements thatdo
notmeetdomestic conditions. Inparticular, ISOenvironmental conditions havetobepartly changed
because ofColombia 'stropical climate.
74. Provisions existforthehomologation ofstandards withVenezuela, withwhich anagreement
wassigned in1992; co-operation forharmonization hasbeeninitiated withMexico (inthecontext
oftheGroup ofThree) andEcuador. Certificates issued byICONTEC, SUPERINDUSTRIA,
Cooperación Colombia Internacional andCINTEL forColombian exports areaccepted byVenezuela 's
COVENIN onareciprocal basis. ICONTEC andVenezuela 'sFONDONORMA have initiated a
harmonization procedure onexisting standards.
88Decrees 2152 and2153 (30December) of1992.
89Atpresent 13national institutions areaccredited.WT/TPR/S/18
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75. On16November 1993, theNational System ofStandardization, Certification and
Metrology (Sistema Nacional deNormalización, Certificación yMetrología )wasre-organized andthe
concept ofcompulsory technical standards wasintroduced; untilthencompliance withspecific technical
standards waslimited toimports bypublic entities.90InFebruary 1995, acertificate ofconformity
(certificado deconformidad )withmandatory national technical standards (normas técnicas colombianas ,
NTC) wasintroduced foranumber ofimported orlocally manufactured goods.91These include soaps,
detergents, plastic andrubber goods, glassitems, wood products, printers, ironandsteelgoods, certain
cooking utensils, lighting bulbs, electro-technical goods (transformers, cables), electric household
apparatus, carparts, containers forthetransportation ofcertain gases andliquids, cement, construction
material, civilengineering andarchitectural material, mining equipment, dental equipment, andtoys.
Atpresent, 306outofatotalof3,597 NTCs arecompulsory.
76. Andean Group guidelines onstandards werealsoupdated withaviewtoeliminating barriers
tosub-regionaltradeandpromotingthemodernizationofthemanufacturingindustry.Theseareincluded
inAndean Group Decision 376of18April 1995, ontheAndean System ofStandardization,
Accreditation, Testing, Certification, Technical Regulations andMetrology (Sistema Andino de
Normalización, Acreditación, Ensayos, Certificación, Reglamentos Técnicos yMetrología ),amending
Decision 180. Itsprovisions arebased onproposals bytheISO,provisions oftheWTO Agreement
onTechnical Barriers toTrade aswellasexperience from theregional integration process. The
establishment ofAndean standardization (RedAndina deNormalización )andtesting laboratory (Red
Andina deLaboratorios deEnsayos )networks isenvisaged.92
77. Colombia hasnotified itsstandardizing body andnational enquiry point totherelevant
WTO Committee.93
(b) Sanitary andphytosanitary regulations
78. Domestic legislation onsanitary andphytosanitary standards hasbeen recently updated.94
Andean Group Resolutions 344and347contain, interalia,alistofthesanitary norms tobeobserved
intheintra-sub-regional tradeofanimal andfishproducts. Colombia isamember oftheInternational
Office ofEpizootics.
79. Sanitary andphytosanitary norms affecting imports depend onthetypeofproduct, themeans
oftransport, thesituation inthecountry oforigin andwhether relevant international provisions are
90GATT (1990); Decree 2269, 16November 1993.
91Decree300,10February1995,regulatedby:SUPERINDUSTRIAResolution343(certificationmodalities
forimporters 'compliance withcompulsory standards), 27February 1995; INCOMEX External Circular 023
(conceptsappliedforgrantingandlegitimizingcertificatesofconformityforitemssubjecttocompulsorystandards)
22March 1995; INCOMEX External Circular 082, 23October 1995.
92Asociación Nacional deIndustriales (1995).
93WTO documents G/TBT/ENQ/4, 30January 1996; G/TBT/CS/1, 7February 1996.
94Thisincludes: Decree 677amending therégimes affecting medicines, cosmetics, toilet, health andcleaning
products (Régimen deRegistros yLicencias, elControl deCalidad, yRégimen deVigilancia Sanitaria de
Medicamentos, Cosméticos, Preparaciones Farmacéuticas abasedeRecursos Naturales, Productos deAseo,
HigieneyLimpiezayotrosproductosdeusodoméstico),26April1995;anda1993compilationbytheColombian
Agricultural Institute (ICA) ofquarantine andinspection requirements affecting vegetable material andbiologic
agents(InspecciónyCuarentenaVegetalrequisitosparalaintroducciónenColombiadematerialvegetalyagentes
biológicos benéficos para laagricultura ).Colombia WT/TPR/S/18
Page 67
observed.95TheColombian Agricultural Institute (Instituto Colombiano Agropecuario ,ICA) ofthe
Ministry ofAgriculture, andtheNational Institute fortheSurveillance ofMedicines andFoodstuffs
(Instituto Nacional deVigilancia deMedicamentos yAlimentos ,INVIMA) oftheMinistry ofHealth
aretheregulatory andimplementing authorities intheirrespective domains.96Their responsibilities
include theelaboration ofregulations, inspection andcertification.
80. Asstated earlier, inaddition toColombian certificates, imports ofcertain items must be
accompanied bydocuments issued bytheauthorities oftheexporting country. These include asanitary
certificate (preserved andcanned meats, milk), aphytosanitary certificate (fruits, vegetables), agrading
certificate (eggs), adisinfection certificate (merchandise inusedsacks), amanufacturer 'scertificate
(ensuring compliance ofalcoholic beverages withcountry oforigin andColombian laws) andapurity
certificate (canned food, nutritious oils,lard,essences forliquors, confectionery, bakery goods).97
81. In1992anAndeanGroupDecisionwasadoptedtoputinplaceasurveillancemechanismagainst
tropical pests anddiseases, andasub-regional inventory ofthose affecting animals ofeconomic
importance waselaborated.98Work wasinitiated withVenezuela inJanuary 1995 toharmonize
requirements relating tosanitary registers including those forfoodstuffs, medicines andcosmetics.
82. Inearly 1996, theauthorities were considering theintroduction oftemporary fumigation
requirements onfreshfruitandproduce shipments fromtheUnited States.99Thismove wasprompted
bythediscovery oftheOriental fruit-fly inCalifornia inOctober 1995.
83. Colombia hassubmitted totheWTO Committee onSanitary andPhytosanitary Measures
information onthenational notification authority, enquiry point andinvolvement inbilateral and
multilateral agreements inthisarea.100
(c) Marking, labelling andpackaging
84. Domestic andimported foodproducts, tobacco products, pharmaceuticals, insecticides and
other toxic products remain subject tospecific marking andlabelling requirements.
95For medicine evaluation purposes, INVIMA recognizes thepharmacopoeia ofFrance (Codex),
Germany (DAB), theUnited Kingdom (BP), theUnited States (USP), theWorld Health Organization andany
other inforce atEUlevel (Paragraph (1)Article 22ofDecree 677, 26April 1995).
96Decree1840(ICA'sresponsibilitiesregardingpests,sanitaryandphytosanitaryquarantinemeasures,various
controls,registrationandaccreditationofspecializedfirms),3August1994;Decree677(INVIMA),26April1995.
97Dun&Bradstreet Information Services (1994); Bureau ofNational Affairs (1995).
98AndeanGroupDecision328,titledAndeanAgriculturalandAnimalHealth(SanidadAgropecuariaAndina),
30October 1992, andJUNAC Resolution 403(Inventario Subregional dePlagas yEnfermedades delosAnimales
deimportancia económica para elÁreaAndina) ,30April 1996.
99Journal ofCommerce, 17January 1996.
100WTOdocumentsG/SPS/5/Rev.1,1Decemb er1995;G/SPS/ENQ/3,24October1995;andG/SPS/W/38,
6December 1995.WT/TPR/S/18
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(xv) Government procurement
85. Asstated inChapter II,Colombia isnotasignatory totheWTO Agreement onGovernment
Procurement.
86. Government procurement policy andlegislation havebeenmodified recently withtheobjective
ofextending the1990economic reforms inthisareaandimplementing theprinciples setinArticle 209
ofthenewConstitution. Law222of1983101,containing theconditions affecting public procurement
inColombia, wasreplaced byLaw80ofOctober 1993which hassince beenelaborated byanumber
ofDecrees.102
87. Thenewlegislation gives equal treatment toforeign anddomestic companies onareciprocal
basis.103However, ifconditions ofofferareequal, preference isgiven tonational suppliers. Among
foreign bidders, preference isgiven totheofferutilizing more national components interms ofmaterial
andhuman resources aswellasgreater technology transfer. A25percentsurcharge added tobids
from foreign companies, andtheobligation toassociate withdomestic firms, havebeeneliminated.
88. Thelawcovers allpublic sector agencies (including departmental andmunicipal administration)
andentities where theStateowns more than50percentofthecapital.104Contracts fortheexploration
andexploitation ofnatural resources, telecommunications, radio broadcasting, postal services, public
andfinancial services areregulated byother laws.
89. Atpresent, twoprocedures areavailable: public oropenbidding (licitación oconcurso público )
anddirect purchase orcontracting (contratación directa ).Thedirect purchase procedure isusedwhen
thecontract orpurchase value islower thanaspecific amount, depending ontheannual budget ofthe
entity (Table IV.6), orincases of:tiedloanconditions; inter-agency contracts (excluding insurance);
artistic orexclusive professional services; leasing orpurchase ofrealestate; emergency situations;
absence orinadequate number ofbidders; goods andservices relating tonational defence andsecurity;
agricultural andrelated products available incommodity exchange markets; health services; contracts
affecting State enterprises (industrial, trading, mixed-ownership) covered byLaw80.105
101Under theDecree Law222of1983, theauthorities could unilaterally interpret, alterorcancel contracts
ofpublic procurement orpublic works. Preference wasgiven tolocal goods andservices andaforeign contractor
wasobliged toassociate with aColombian firm. More information ontheprevious legislation isfound in
GATT (1990).
102These include: Decree 2681 (credit operations) of1993; Decree 624(selection procedures forcontracts
forgaspipelines forpublic use), 22March 1994; Decree 855(direct contracts andtheir adjudication),
28April 1994; Decree 856(requirements forregistration tochambers ofcommerce), 28April 1994;
Decree 1584 (technical criteria for classifying suppliers/bidders inthe register), 25July1994;
Decree 1985 (delegation ofcontracting capacity) of1994; Decree 2245 (registration feesforsuppliers/bidders),
6October 1994; Decree 679(regulating anumber ofoperational aspects ofLaw80), 28March 1994;
Decree94(competenceforcontracting)of1995;Decree95(loanconditions)of1995;Decree194(modifications
totheregister ofsuppliers/bidders) of1995.
103Articles 20and21ofLaw80.
104Article 2ofLaw80.
105Article 24ofLaw80.Colombia WT/TPR/S/18
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Table IV.6
Threshold values forselecting public tender procedures
(Inminimum monthly wages equivalent toCol$ 142,125 orUS$142 in1996)
Sizeoftheentity (annual budget oftheagency) Minimum contract value
1,200,000 ormore 1,000
Lessthan1,200,000 orhigher orequal to1,000,000 800
Lessthan1,000,000 orhigher orequal to500,000 600
Lessthan500,000 orhigher orequal to250,000 400
Lessthan250,000 orhigher orequal to120,000 300
Lessthan120,000 orhigher orequal to12,000 250
Lessthan12,000 orhigher orequal to6,000 125a
Lessthan6,000 125a
a Asof1996.
Source: Article 24(1)(a)ofLaw80of1993; Decree 2150, 5December 1995; Decree 62,5January 1996.
90. Law80established acentral unified register ofsuppliers (registro único deproponentes ),
maintained bylocalchambers ofcommerce, thusending agency-specific registration requirements and
procedures. National firms mustregister withlocalchambers ofcommerce. Foreign firms haveto
submit totheregister proof ofsimilar registration intheir country oforigin andappoint alegal
representative inColombia. Qualified bidders areclassified according totheirexperience aswellas
theirtechnical andfinancial capacities.106
91. Noinformation isavailable onthesumsspentongovernment procurement ofgoods andservices
byitem,supplier,purchasingmethodorpublicentity;thistypeofdataisnotcompiledcentrally,because
eachpublic entity autonomous initsprocurement decisions.
(xvi) Local-content requirements
92. Since 1988, agro-industrial enterprises importing andprocessing agricultural products have
beenrequired toshow thattheyhaveacquired localproducts.107Implementing legislation, which has
beenrecently amended, ismandatory andenforceable.108Compliance withdomestic absorption quota
requirements isnecessary toobtain animport licence. TheMinistry ofAgriculture administers the
scheme (Chapter V).
93. Since December 1993, mandatory local-content requirements, adopted inthecontext ofthe
Andean Group automotive agreement (Chapters IIandV),haveapplied toallmotor vehicle assembly
enterprisesinColombia.109Enterprisescomplyingwiththerequirementsenjoya3percentconcessional
tariff ratefortheirimports ofCKD vehicles (section (ii)(e)). Recent (1995) legislation introduced
106Forthispurpose amethodology (including specific formulae) isdetailed inDecree 1584 (25July1994).
107Law 81of1988; Decree 501of1989.
108Law 101, 23December 1994; Decree 1279, 22June 1994.
109Colombia signed on13September 1993 aComplementarity Agreement fortheAutomotive Sector with
Venezuela andEcuador. Since 1995, therégime hasbeenimplemented under Decree 440(8March 1995) which
replaced Decree 2642, 28December 1993. Additional information onthismechanism canbefound inWTO
(1996).WT/TPR/S/18
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theconcept ofsub-regional procurement andthecorresponding content requirements inaccordance
withtheMay1994 Addendum totheComplementarity Agreement (Chapter V).110TheMinistry of
Economic Development isresponsible forsupervising andimplementing themeasure. In1995, these
measures were notified under Article 5.1oftheAgreement onTrade-Related Investment Measures
totheWTO Committee onTRIMs.111
(xvii) Rules oforigin
94. According toitsnotification totheWTO Committee onRules ofOrigin, Colombia doesnot
haveanyjudicial decisions oradministrative rules generally applicable tonon-preferential rules of
origin.112Preferential rules oforigin mustsatisfy theguidelines oftheGeneral Régime ofOrigin of
theLAIA, ortherules oftheAndean Group ortherelevant provisions ofother agreements signed
withother countries.113Andean Group rules areeither sectoral orproduct-based.114
95. Ingeneral, twocriteria areusedforgranting preferential treatment: (i)change intariff
classification oftheproduct concerned asaresult ofprocessing; (ii)utilization ofrawmaterials which
areimported fromthirdcountries, upto50percentofthef.o.b. value oftheexported goods. Under
theAgreement oftheGroup ofThree, until1January 1998 aregional content ranging between 40
and50percentisrequired toobtain agreed preferential treatment; afterthisdatecontent requirements
aretobesetbetween 50and55percent. TheAgreement withChile provides forduty-free treatment
from 1January 1994 formotor vehicles andparts (except sparking plugcables andradiators) with
40and50percentoflocal value added, respectively. Forimports ofmotor vehicles from other
signatories oftheComplementarity Agreement fortheAutomotive Sector, content requirements vary
depending onthevehicle category andthesub-regional origin. Colombia requires localcontent for
category 1vehicles of35and40percentoff.o.b. value fromEcuador andVenezuela, and30percent
forcategory 2.
110Decree 440, 8March 1995
111WTOdocumentG/TRIMS/N/1/COL/1,11April1995andAdd.1,2August1995;G/TRIMS/N/1/COL/2,
21September 1995. Article 5(1)oftheTRIMs Agreement requires thenotification ofallmeasures notin
conformity withitsprovisions. These include compliance inorder toobtain anadvantage (Annex, illustrative
list).
112WTO document G/RO/N/1/Add.1, 22June 1995.
113MoreinformationonLAIArulesoforigin,basedonLAIAResolutionNo.78,24November1987iscontained
inGATT (1993) andGATT (1994a).
114Thegeneral rulesarefound inAndean Group Decision 293,21March 1991. Specific rulesoftheAndean
Group arecontained inJUNAC Resolutions 307(13September 1991), containing conditions forproducts of
metal base industries, and 336,titled Specific Origin requirements (Requisitos Específicos deOrigen ),
11March 1993, relating toregional value added bythecarassembly industries within theGroup. Rules oforigin
forammeters, voltmeters, switches, linebreakers, zipfasteners, products ofphthalic anhydride, acetylsalicylic
acid,petroleumderivatives,biorientedpolypropylenefilm,benzoicperoxide,talcandchlorofluoromethaneproducts
arestipulated inother Andean Group Resolutions.Colombia WT/TPR/S/18
Page 71
(xviii) Anti-dumping andcountervailing dutyactions
96. Colombia 'sfirstlegislation onanti-dumping andcountervailing measures, introduced in
October 1990, wassubsequently modified inJanuary 1993115andFebruary 1995 withtheobjective
ofstreamlining itsprovisions inthelightofnewmultilateral obligations inthisarea.116Thelatest
legislation (Decree 299)which supersedes previous texts, implements theWTO onAnti-dumping and
Subsidies andCountervailing Measures affecting imports fromnon-members oftheAndean Group.117
Andean Group rulesapply togoods fromthesub-region; these differ, interalia,inthedefinition of
subsidies, where thebroader GATT Article VIdefinition isusedrather thanthatoftherelevant WTO
Agreement.118
97. From 1991, INCOMEX hasbeenresponsible fortheimplementation ofthelegislation.119Final
decisions aremade bytheHigher Council ofForeign Trade afterhearing theopinion oftheTrade
Practices Committee (Comité dePrácticas Comerciales) ,anindependent bodyresponsible forstudying
theresults oftheinvestigations carried outbyINCOMEX. INCOMEX provides technical support
atallstages, including theimposition ofduties. Investigation procedures maybeinitiated exofficio
byINCOMEX, oronrequest ofamajor proportion ofthedomestic industry (representing more than
50percentofproduction). Allprocedural decisions arepublished intheGazette oftheMinistry of
Foreign Trade.
98. Inthelatest legislation, procedures have been accelerated. Thetime period inwhich
investigations forpreliminary determination ofdumping havetobecarried outhasbeenreduced from
fivemonths to65days. Definitions havebeenlaiddown toassist thecalculation ofdumping margins
andadjustments formarket andexport prices. Deminimis clauses havebeenintroduced forthemargin
ofdumping (lessthan2percentoftheexport price), theamount ofsubsidy (lessthan1percent
advalorem) andthevolume ofimports (lessthan1percentofthevolume ofdomestic consumption).
99. Intheabsence ofinternational obligations (e.g., inthecaseofnon-WTO members), theinjury
testissubject toa"mirror clause" which makes itapplicable onlyifsimilar treatment would begranted
toColombian exports inthecountry oforigin. Inthiscase, provisional duties canbeimposed
simultaneously withtheinitiation oftheinvestigation.
100. Definitive duties canremain inforce uptoamaximum offiveyears andarenotsubject to
asunset clause. Thelevelofduties canonlyberevised oneyearaftertheirentry inforce, exofficio
115Asstated inChapter II,Colombia adhered totheTokyo Round Codes onSubsidies andAnti-dumping
inMay 1990 andApril 1992 (GATT documents SCM/102, 10May 1990; andADP/75, 15April 1992).
116Decree 2444, 17October 1990, contained inGATT documents SCM/1/Add.29, 18April 1991, and
ADP/1/Add.29, 12May 1992. Thelegislation wassubsequently amended by:Decree 150,25January 1993
(containedinADP/SCM/1/Add.29,Rev.2,17May1994);Decree299RegulatingtheApplicationofAnti-dumping
andCountervailing Duties), 10February 1995 (contained inG/ADP/N/1/COL/1 orG/SCM/N/1/COL/1,
3April 1995).
117Article 1ofDecree 299of1995.
118Andean Group Decision 283(21March 1991) allows theBoard oftheCartagena Agreement (JUNAC)
toauthorize theadoption ofanti-dumping and/or countervailing measures.
119GATT document SCM/1/Add.29/Suppl.1, 14April 1992.WT/TPR/S/18
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byINCOMEX oruponrequest byaninterested party. Thelegislation contains ananti-circumvention
clause which mayextend thescope ofadefinitive dutyinforce toparts orcomponents forassembly
orfinishing operations inColombia.
101. Asstated insection (iv),Colombia usestheAndean Price Band system tocounter subsidized
exports ofagricultural items.
102. Colombia hasregularly submitted totheGATT andsubsequently WTO Committees on
Anti-Dumping Practices andonSubsidies andCountervailing Measures semi-annual reports onactions
inthisarea. Between November 1995 andFebruary 1996 Colombia replied toquestions raised in
theCommitteeonAnti-DumpingPracticesbyAustralia,Canada,HongKong,RepublicofKorea,Mexico
andtheUnited States, relating tovarious aspects ofitslegislation. Table IV.7contains information
oncaseswhereColombiahashadrecoursetoanti-dumpingproceduresinrecentyears;nocountervailing
action hasbeenadopted intheperiod under review.
103. Since May1995definitive anti-dumping duties havebeenlevied ontin-free steelimports from
theUnited States. These duties aretoremain ineffect forfiveyears.
(xix) Safeguard actions
104. Colombia firstintroduced safeguards legislation in1994; several provisions havebeenmodified
byLaw170approvingtheWTOAgreements,includingthoseallowingforemergencysafeguardmeasures
foragricultural andfisheries products.120Thelegislation, which hasbeennotified totheWTO, was
discussed ataspecial meeting oftheCommittee onSafeguards heldinJuly1995. Under thenewlaw,
safeguard measures arenottobeapplied formore thanoneyear. Provisional measures maybeadopted
incritical circumstances intheform ofasupplementary customs duty.121
105. INCOMEXisresponsiblefortheimplementationofthelegislationandmayinitiateinvestigations
exofficio. Itsfindings andrecommendations aretransmitted totheCustoms, Tariffs andForeign Trade
Committee (Comité deAsuntos Aduaneros, Arancelarios ydeComercio Exterior )which forwards its
views totheHigher Council ofForeign Trade (Consejo Superior deComercio Exterior )forafinal
decision ontheimposition ofsafeguard measures. Decisions taken atthedifferent stages ofthesafeguard
procedures arepublished attheGazette oftheMinistry ofForeign Trade.
120Decree 809, 21April 1994; Decree 2657, 1December 1994. WTO documents G/SG/N/1/COL/1
(notification), 3April 1995; andG/SG/M/2/Suppl.1, 18March 1996.
121Foragricultural andfisheries products, excluding those covered bythevariable import levies régime
(section (iv)), safeguard measures (intheform ofcustoms duty) canbeadopted foramaximum of90daysin
caseofafallofinternational prices below domestic production costs (Articles 17to19and23ofDecree 809).Colombia WT/TPR/S/18
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Table IV.7
Anti-dumping andcountervailing cases, 1992-96
Product Origin Investigation Provisional duties (dumping
margin andduration)Final duties (dumping
margin andduration)
Anti-dumping
Orthophosphoric acid EC(Belgium) Initiated: 9May1991 72percent(asof
31July1991)57percent(from
13May1992 to...)
Orthophosphoric acid United States Initiated: 14August 1991 78percent(asof
22April 1992)78percent(from
14August 1992 to...)
Steel bars Cuba Initiated:
15December 1992;
Terminated (noinjury):
17May1993None None
Maize glucose,
ordinary starchMexico Initiated:
30December 1992
Terminated (noinjury):
30September 1993Asof17May1993 anduntil
completion ofthe
investigation:
35percent(glucose),
32percent(starch).None
Compound chemical
coffee-grade fertilizerEC(Belgium) Initiated: 4February 1993 Asof6July1993:
33percent.16percent(from
30November 1993
to...)
Chemical fertilizer EC
(Netherlands)Initiated: 10June1993
Terminated
(noinjury):
10March 1994
Homopolymer
polypropyleneUnited States Initiated: 18June1993 Asof3November 1993:
28percent.30percent(from
18March 1994 to...)
Fixed batteries EC(Germany) Initiated:
6September 1993
Terminated (nodumping):
7June1994
Ethyl acetate United States Initiated: 4October 1993 Asof4March 1994:
77percent.77percent(from
1July1994 to...)
Chrome plate EC
(United
Kingdom)Initiated:
11October 1993
Chrome plate United States Initiated: 3May1994
Terminated:
3October 1994
Rice VietNam Initiated:
14September 1994
Countervailing
Nocases
... Notavailable.
Source: Colombia 'snotifications toGATT andtheWTO.
106. TheSpecial Safeguard Provisions oftheWTO Agreement onAgriculture, allowing forthe
imposition ofanadditional dutyabove thebound tariff levelatadetermined trigger volume orprice
level, affect 55four-digit andonesix-digit NANDINA tariffitems thatarecovered bythe"tariffication"
commitment.122Some ofthese items arealsocovered bythetariff quota commitment; inaddition,
some ofthese areincluded intheAndean Price Band system.
122Article 5oftheAgreement andPartI,Section I-A,Schedule LXXVI, 15April 1994.WT/TPR/S/18
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107. Colombia hasretained itsrighttousethetransitional safeguard mechanism under theprovisions
oftheWTO Agreement onTextiles andClothing.123Ithassubmitted itslistoftextile andclothing
products, covering 16percentofthevolume ofimports in1990, thatareincluded inthefirstphase
ofintegrationintoGATT1994.124Thelistcompriseseightten-digitHSitems,mainlyyarnsofman-made
fibres, woven fabrics ofsilkandtextile made-ups (e.g., skirts, cotton-made articles).
108. Since1991,nosafeguardactionunderArticleXIXhasbeenadoptedbyColombiaagainstimports
from anyGATT/WTO Member.125
109. Specificsafeguardsprovisions,affectingpreferentialtrade,arecontainedinregional,sub-regional
orbilateral agreements towhich Colombia isasignatory.126Since 1990, regional safeguard action
hasbeen taken, onaselective basis, inthecontext oftheAndean Group; suchaction hastobe
authorized bytheBoard oftheCartagena Agreement. Between MayandDecember 1995, inresponse
tocomplaints fromfarmers, riceimports fromVenezuela werebanned, while a20percenttariff (the
actual CET rate)wasimposed onsugar imported through Venezuela.127A2.98percenttariff was
imposed forsixmonths onpolypropylene bagsfromEcuador. On2June1995, aninvestigation was
initiated against imports ofsteelbarsfrom Venezuela. TheJUNAC requested thesuspension of,or
objected totheadoption of,safeguards byColombia in1990and1991against imports offishandmeat
flour, andpolypropylene bags.
110. Since 1990, safeguard action, intheformofadditional advalorem tariffs, hasbeentaken on
threeoccasions against non-GATT/WTO countries. RicefromVietNamhasbeensubject tosafeguard
action since July1994; noexpiry datehasbeenproposed. Imports oftextiles, clothing andfootwear
from China weresubject toadditional duties ranging from 40to100percentbetween February and
December 1995.
(xx) Other measures
111. Smuggling, which serves toalarge extent asamoney laundering mechanism128,issubject to
fines andadministrative sanctions butnotimprisonment.129Action isbeing taken bytheCustoms
authorities inthecontext ofcertain programmes tostrengthen control, inspection andmonitoring
procedures.
123This wasnotified pursuant toArticle 6paragraph 1oftheWTO Agreement onTextiles andClothing
(document G/TMB/N/10, 1March 1995).
124Article 6,andparagraph 7(b)ofArticle 2oftheWTO Agreement onTextiles andClothing (document
G/TMB/N/55, 28April 1995).
125WTO document G/SG/N/2/COL, 28March 1995.
126These arecontained in:Montevideo Treaty (approved byLaw45of1981); Chapter IXoftheCartagena
Agreement (Law 8aof1993); theAgreement oftheGroup ofThree (Law 172of1994); andthebilateral
Agreement withChile (Decrees 2717 of1993 and1741 of1994).
127EIU(1995b).
128Latin American Weekly Report, 13July1995, p.311.
129Decree 1750, 4July1991.Colombia WT/TPR/S/18
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112. According toestimates bythedomestic clothing industry association (Asociación de
Confeccionistas deColombia, Asoconfección ),in1994smuggling involved goods worth US$2.5 billion
which could havegenerated fiscal revenue (from duties andtaxes) ofUS$952 million. Itseems that
mostofthesmuggled goods consist ofelectrical household appliances andcigarettes, mainly fromthe
United States. InFebruary 1996, theColombian Minister ofJustice stated thatclose co-operation for
themonitoring ofsupply andmarketing channels toColombia wastobesought with the
U.S.authorities.130
(3) Measures Directly Affecting Exports
(i) Registration anddocumentation
113. Newregulations onexport documentation andprocedures were introduced in1990.131The
single export document (Documento ÚnicodeExportación )wasreplaced byashipment authorization
request. Export documentation (e.g., showing compliance withanyexport restraint provisions inforce)
must beverified andasample of5or10percentofthemerchandise inspected before shipment
authorization(autorizacióndeembarque)canbedeliveredbytheCustoms.Moreflexibledocumentation
andprocedural requirements apply forflower andcoffee shipments.
114. Allexporters seeking refunds ofvalue-added tax(IVA) onexports must beregistered inthe
National Exporters 'Register ofINCOMEX.
115. Toobtain anexport authorization, theexporter mustsubmit acustoms declaration, thedefinitive
commercial invoice andbilloflading. Depending onthemerchandise ordestination, additional
documentation requirements mayinclude sanitary orphytosanitary certificates foranimal orfood
products. Certificates oforigin arerequired forexports benefiting from preferential treatment, and
special documentation forgoods subject torestraints ortariff quotas atdestination (e.g.textiles and
clothing).
(ii) Export taxes, charges andlevies
116. Export taxes arelevied oncoffee, crude oil,gas,coalandferro-nikel (seealsoChapter V).132
117. Exporters ofcoffee payacoffee contribution tax(contribución cafetera ),ofwhich thelevel
isdetermined bythedifference between theexport value ofcoffee soldtotheNational Coffee Fund
(Fondo Nacional delCafé,FNC), anditsestimated cost,taking intoaccount thedomestic buying price
forexport-type coffee.133Revenue from thistaxgoestotheFNC.
130ElTiempo ,15February 1996.
131Ministry ofFinance Resolution 3492, 24August 1990.
132Law 6of1992.
133Law9of1991. From 1991 to1995 theannual revenue from thistaxranged between US$3 million (1992)
andUS$599 million (1994).WT/TPR/S/18
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118. Coffee exporters mayberequired tosurrender, without payment, acertain proportion ofthe
volume ofExcelso (untreated) coffee thattheywishtoexport, orpaytheNational Federation ofCoffee
Growers (FEDECAFE) thepesoequivalent, when itissodecided bythePrice Committee (Comité
dePrecios) ,composed oftheMinisters ofFinance andAgriculture andtheManaging Director of
FEDECAFE. However, thismeasure hasnotbeenapplied since theendof1991.134
119. Since July1992, amonthly special contribution tax(contribución especial) hasbeenlevied
onexploitation ofoilandgas,andexports ofcoalandferro-nickel.135Rates were lastmodified in
December 1995 andrange from 0.6to7percent(Chapter V);those affecting oilandgasaretobe
phased outbytheyear2001. Thetaxiscalculated ondifferent values depending ontheproduct and
arebased onf.o.b. export prices certified orsetbytheMinistry ofMines andEnergy. Production
onwhich royalties arecharged isexempt from thespecial contribution; thisisalsothecaseforgas
forelectricity-generating plants andresidential consumption. From 1997onwards, theamount ofthe
taxwillnotbededucted from company revenue subject totherevenue tax(impuesto sobre larenta) .
Revenue (inpesos) fromthistaxhasalmost doubled since 1993; in1995itstood atUS$173 million.
Oilcontributes 95percenttothetotalamount collected.
(iii) Minimum prices
120. Minimum export/surrender prices, fixed bytheManagement Board (Junta Directiva )ofthe
Central Bank onthebasisoftheinternational market prices intheNewYork Coffee, Sugar andCocoa
Exchange, continue tobeapplied togreen coffee.136F.o.b. prices arecertified (oil)orset(coal and
ferro-nickel) bytheMinistry ofMines andEnergy fortaxpurposes (i.e., calculation ofspecial
contribution taxdiscussed earlier).
(iv) Export prohibitions
121. Noexport prohibitions oncommercial grounds areapplied byColombia atpresent, except
forcoffee qualities thatdonotmeetthestandards established byFEDECAFE. Exports ofdenatured
orsemi-roasted coffee arealsoprohibited attimes when adomestic consumption subsidy isinforce
(Chapter V).137
(v) Export licensing
122. Export licensing intheformofapriorauthorization orcertificate isrequired foritems covered
bylimited preference ortrade restrictive agreements withtheUnited States covering sugar, canned
tunaandcertain clothing items, andtheEUonbananas. Sugar exports totheUnited States under
preferential terms aresubject toanannual quota, operated through eligibility certificates issued by
theUnited States anddelivered byINCOMEX toexporters (Chapter V).Access andpreferential
treatment forexports ofunderwear andwomen 'sandgirls'woollen suitstotheU.S.market arealso
limited bytherecently concluded bilateral agreements discussed below (section (vi)). Since May1995,
134IMF (1995).
135Article 13ofLaw6of1992; Articles 52to59ofLaw223, 20December 1995.
136Article 25ofExternal Resolution oftheBank oftheRepublic, 2September 1993. and its
amendment (External Resolution 34/94).
137Articles 10and11ofDecree 1538, 15May 1986.Colombia WT/TPR/S/18
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thedistribution ofthetariff quota affecting banana exports totheEUhasrequired origin andexport
certificates; quota allocation procedures were modified inJanuary 1996 afteraMemorandum of
Understanding hadbeensigned withtheUnited States (Chapter II).138
123. Since1991,exportauthorization(vistobueno)fromtheMinistryofAgriculturehasbeenrequired
foreight 10-digit NANDINA items comprising riceandsugar.139
124. Goods covered bytheConvention onInternational Trade inEndangered Species ofWildFauna
andFlora (CITES) require CITES certificates onexport. Other goods covered byconventions such
astheMontreal Protocol onozone depleting substances, orembargoes agreed intheUnited Nations,
require nospecial certificates other thantheshipping authorization (autorización deembarque) issued
byCustoms140.TheBasel Convention ontheControl ofTransboundary Movements ofHazardous
Wastes andtheirDisposal maybeenforced sometime in1996.141
125. Since 1991, INCOMEX hasdelivered export licences foritems subject torestrictions, import
quotas orspecial documentation procedures inthemarket ofdestination; other cases fallunder the
responsibility oftheCustoms service.
(vi) Voluntary restraints, surveillance, retention schemes andsimilar measures
126. Asamember oftheAssociation ofCoffee Producing Countries, Colombia iscommitted to
retain 10to20percentofitsexport volume ofcoffee whenever world price developments activate
theAPPC 'sretention scheme.142This wasthesituation forthecrops in1993/94 and1995/96
(Chapter V).
127. Since 1990 Colombia hasbeen party tothree bilateral agreements under theMultifibre
Arrangement (Chapters IIandV),butthese arenolonger inforce.143Oneagreement, inforce from
January 1987 toend-December 1994, provided foraconsultation system, without setting quotas in
theEUmarket. Thesecond agreement covered exports ofcotton terry-towels, washcloths andsets
toCanada fortheperiod from September 1991 toend-December 1992. Athirdagreement affected
exports ofcotton poplin, broadcloth andprintcloth totheUnited States between January 1992 and
end-December 1993; in1994, limitations covered cotton printcloth fabric (219metres) andmen's
andboys'suitsofwool (122,715 units).144These restraints were terminated inDecember 1995.
138Decree 855, 25May 1996.
139Asociación Nacional deIndustriales (1995).
140Reportedly, thesmuggling ofrarespecies totheUnited States isamajor problem. In1994, Colombia
confiscated 9,000 turtles, 6,900 snakes and20,000 snake skins (Latin American Regional Reports-Andean Group,
3August 1995, p.7).
141This Convention isduetoberatified in1996 when Law163passes through theConstitutional Court
(Chapter II).
142MoreinformationontheAPPCanditsretentionschemecanalsobefoundinWTO(1995a)andWTO(1996).
143COM.TEX/SB/1778 (24August 1992), 1828 (20April 1993) and1851 (23July1993).
144Information supplied bytheUnited States pursuant toArticle 2.1oftheWTO Agreement onTextiles and
Clothing (document G/TMB/N/63/Add.1, 10August 1995).WT/TPR/S/18
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128. Under theWTO Agreement onTextiles andClothing, two"special access" memoranda of
understanding affect exports ofunderwear andwomen 'sandgirls'woolsuitstheUnited States. These
began inJuneandAugust 1995 andruntotheendof1997. Thequantitative limitfortheformer,
which isbeing increased progressively onanannual basis, isdivided intotwoparts: anaccess restraint
(2.25 million dozen) andapreferential treatment restraint similar tothatofproducts having used
U.S.cottonfabricundertheATPA'sGuaranteedAccessLevel(20.25milliondozen)(ChaptersIIandV).
These weretoriseby41percentin1996 andafurther 6percentin1997.145Quotas affecting wool
suitsforwomen andgirlsweresetat201,000 units(restraint forclothing using U.S.-made parts) and
80,400 units(restraint without origin limitations) for1995; a2percentannual quota increase isforeseen
for1996 and1997.
129. Since 1994, yellowfin tunaexports totheUnited States havebeensubject toembargo. The
authorities hoped thatthisprohibition would beeliminated withrespect tocatches from theEastern
Pacific bymid-1996.146
(vii) Export subsidies
130. Afewmonths afteradhering totheTokyo Round Agreement onSubsidies andCountervailing
Measures, Colombia declared thatitwould refrain fromestablishing anyexport subsidy programmes
inconsistent withitscompetitive anddevelopment needs andtheprovisions oftheAgreement.147
131. Taxreimbursement certificates (certificados dereembolso tributario ,CERT) cover the
reimbursement ofdomestic indirect taxes, charges andotherlevies paidbyexporters aswellasasubsidy
element. These certificates, introduced in1967, remain available topromote secondary and
non-traditional exports.148Coffee, petroleum andpetroleum products, andexports under special
arrangements areexcluded from CERT benefits. Thismeasure isviewed bytheauthorities asa
compensatory instrument against currency appreciation, distorted international prices orpenetration
costs relating tomarket andproduct diversification. Legislation onCERTs wasupdated in1992and
1995.149TheCERTs, issued bytheCentral Bank when export proceeds aresurrendered intheforeign
exchange market, arefreely negotiable bonds quoted inthestock exchange; theycanbeusedfor
payments ofincome tax,customs duties, andcertain other taxes. Asfrom 1992, CERT benefits do
notcover exports toAndean Group partners.150
145WTO documents G/TMB/N143, 21February 1996; andG/TMB/R/11, 30April 1996.
146ElTiempo ,30January 1996.
147GATT document SCM/105, 19September 1990.
148IMF (1995). TheCERT régime wasnotified totheWTO inJune 1995 (document G/SCM/N/3/COL or
L/7611/Add.11, 3August 1995).
149Legislation inforce comprises: Article 173c ofDecree-Law 444of1967; Law48of1983; Article 11
ofDecree 631of1985; Decree 446,Decree 1608 andResolution 2386 of1992; andDecree 708of1995.
150Decrees 1608 and1650 of1992.Colombia WT/TPR/S/18
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132. Between 1991 and1992 thelevels ofCERT nominal rateswerecutbyhalfandsetat0,2.5,
4and5percentofthevalue ofexports, depending ontheproduct andcountry ofdestination.151Higher
rates forcertain items have applied forshort periods.152Thevalue reimbursed iscalculated asa
percentage ofthef.o.b. value. From 1992to1995, theshare ofCERT-eligible tototalexports dropped
by7.2percenttoabout 44percent; thenumber oftarifflinesbenefiting fromCERTs dropped to2,577.
133. Between 1991and1994theeffective overall average rateofCERT (i.e.thetotalamount granted
divided bythef.o.b. value ofeligible exports) fellbyabout 48percentto3.6percent.153Theestimated
subsidy element ofthisrate,i.e.,theamount thatisnotdirectly related tothereimbursement ofdomestic
indirect taxes, charges andother levies paidbytheexporter, alsodeclined from 2.1to1percentin
1994. In1994, recommendations weremade totheHigher Council ofForeign Trade toincrease CERT
expenditureby10percentannuallytoUS$123millionby1998.154However,for1995,officialestimates
fortotaldisbursements under CERTs indicate an18percentrisetoUS$94 million, relative tothe
previous year. Thesubsidy element wastodropby11percentto19.8percentofthetotalexpenditure,
orUS$18.6 million.155
134. Since 1992, more than82percentoftariff items havebeeneligible forCERT benefits, and
between 1992 and1994, about 30percentoftotalexports benefited. In1993, major recipients of
thesubsidy element were theagricultural, meat, textiles andleather industries (Chapter V).While
thehighest ratecovers 69percentoftheitems concerned, 70percentofCERT expenditure goesto
bananas andflowers, which represent onethirdofnon-traditional exports invalue andreceive thelowest
rate.156
135. Under theSIEX régime, unrestricted duty-free access ofcapital goods andinputs forthe
production ofexport goods is,interalia,intended tostrengthen export diversification andtechnological
renewal.157TheSIEX, which wasfirstnotified totheGATT in1992 under Article XVI:1, was
considered bytheauthorities tobeasubsidy foreconomic development purposes, andthuswascovered
byArticle 14oftheTokyo Round Subsidies Code.158Thegranting ofSIEX benefits issubject toexport
performance requirements (section (xii)).
151Decree 446of1992.
152BetweenSeptemberandDecemb er1992(Decree1469,10September1992)CERTratesforcertainexports
were setat3.5,4.3,5.6,7and8.5percent. From April toDecember 1995, levels were increased to5.5,6,
6.5,7and8percentforanumber ofcases (Decree 708ofApril 1995).
153Departamento Nacional dePlaneación (1994a).
154Departamento Nacional dePlaneación (1994a).
155G/SCM/N/3/COL
156Departamento Nacional dePlaneación (1994a).
157Forcertain capital goods, thisfiscal treatment maytaketheform ofdeferred payment ofincome tax.
158GATT documents L/6630/Add.25, 24January 1992 andL/7162/Add.8, 26April 1993.WT/TPR/S/18
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136. Estimates provided totheSecretariat inthecontext oftheTPRexercise indicate thatfrom1991
to1994theeffective rateoftheSIEX export subsidy fellprogressively by25percentto2percent.159
In1993, themain beneficiaries ofthesubsidy were agricultural, textiles andclothing activities.
137. Atransport subsidy forfreight andtranshipment feestoexport markets towhich Colombia
doesnothaveadirect cargo route hasapplied since theearly1980s. Atpresent, thesubsidy isgranted
forafive-year period withdecreasing rates, setat26percentforthefirstthreeyears and13percent
subsequently. Thescope ofthemeasure hasdiminished considerably; inthepast,themaindestinations
benefiting from thesubsidy were Asia(40percent), Oceania (27percent), theCaribbean
markets (20percent) andAfrica (10percent). Themain exports benefiting from thescheme were
maize flour, citric acid,meatpreparations, books andmagazines, textiles andfabrics, leather articles,
andfootwear.160Currently, thescheme covers onlyexports tocertain Central American countries
andHaiti. Theauthorities areaware thatthismeasure constitutes anexport subsidy under theWTO
Agreement onSubsidies.
138. Inconformity withitscommitments under theWTO Agreement onAgriculture, Colombia
willbeprogressively reducing itsbudgetary outlays forexport subsidies (CERT andSIEX) by
24percent,andthequantities benefiting fromsuchsubsidies by14percentoverall, within theten-year
period starting from1995.161According toColombia 'sWTO Schedule, forthebaseperiod (1986 to
1990) theaverage annual expenditure forthesubsidization ofagricultural exports, amounting to
US$377 million, benefited mainly rice(31percent), cotton (19percent) andfruit(16percent) as
wellascocoa beans, sugar, vegetables andcutflowers (almost equal shares totalling 25percent).
139. Colombia willalsoeliminate itsprogrammes ofexport subsidies formanufactured items,
classified asprohibited under theWTO Subsidies Agreement, by2003.162Itconsiders thattheuneven
distribution ofthesubsidy element initsassistance schemes, between sectors, could bebetter addressed
bytheestablishment ofadrawback system forthefullreimbursement ofindirect taxes. Financial
resources could thenbefreed andchannelled intoother export promotion activities.163
140. Since 1990, certain Colombian exports toArgentina (PVC film, disposable syringes),
Peru(hollowsectionsofaluminiumalloys)andtheUnitedStates(freshcutflowers,miniaturecarnations,
roses)164havebeensubject toprovisional ordefinitive anti-dumping orcountervailing duties orprice
159Departamento Nacional dePlaneación (1994a). Intheirsubmission totheGATT Committee onSubsidies
andCountervailing Measures, theauthorities estimated thattheeffective rateoftheSIEX export subsidy in1994
stood at0.5percent(forgone dutyrevenue divided bytotalexports excluding coffee andoil)ofthef.o.b. export
value (G/SCM/N/3/COL).
160Ministerio deComercio Exterior (1996).
161Article 9paragraph (2)(b)(iv) oftheAgreement; PartIVSection II,Schedule LXXVI, 15April 1994.
162Article 3andSub-paragraph (b)paragraph 27.2oftheWTO Agreement onSubsidies andCountervailing
Measures.
163Departamento Nacional dePlaneación (1994a).
164Anti-dumping duties levied onflower exports totheUnited States were reduced from 22.7 percentto
6.4percentinJanuary 1995. TheUnited States isthedestination for80centofColombian flower exports
(EIU, 1995c).Colombia WT/TPR/S/18
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undertakings. According totheauthorities ofthese countries, dumping margins vary from
0to83percent. Investigations heldbyAustralia onwoven polypropylene primary carpet backing
fabric andMexico onpolypropylene filmandzipfasteners didnotresult intheadoption ofany
measure.165
(viii) Duty andtaxconcessions
141. Noother dutyandtaxconcession schemes other thanthose described earlier areinoperation
atpresent.
(ix) Export finance
142. Since 1991, theForeign Trade Bank ofColombia (Banco deComercio Exterior deColombia ,
BANCOLDEX), amixed-ownership entity with89percentcapital participation bytheMinistries of
Foreign Trade andFinance, hasbeenentrusted withproviding export credit under competitive market
conditions aswellasavariety ofotherexport-related financial services (e.g., post-shipment operations,
creation andacquisition offirms, leasing, modernization andfixed investment).166Beneficiaries are
directexporters(producersandinternationaltradingcompanies)andindirectexporters(producersselling
totraders, suppliers ofinputs forexport goods andfirms providing export services) aswellasforeign
buyers ofColombian goods andservices.
143. Preshipment credit inpesos issubject tointerest equivalent totheaverage fixed-term 90-day
deposit rate(Depósitos atérmino fijo,DTF) increased by4to4.5percentage points. TheLIBOR rate,
increased by5.5additional percentage points, applies forcredit inU.S.dollars. Reimbursement cannot
exceed three years forcredit inpesos orfiveyears forcredit inU.S.dollars.
144. Between1992and1995,financeinU.S.dollarsgrewfrom17percenttomorethan60percent
ofanannual portfolio ofsome US$1.8 billion. 87percentofBANCOLDEX funds, available tomore
than2,300 customers, areutilized forpreshipment operations. Export coverage progressed from
17percentin1991 to33percentin1995. In1995, halfofitsfinancial resources wereobtained in
theinternational financial market.
145. BANCOLDEX istoexpand itscredit facilities tofinance theparticipation ofnational companies
indomestic orinternational tenders; theestablishment oracquisition ofexisting international trading
networks; export-related investment abroad; andpartofexport-related infrastructure projects (e.g.,
ports, warehouses).
(x) Export insurance andguarantees
146. Since 1994export credit insurance hasbeenoffered bytheForeign Trade Insurance Company
(Aseguradora delComercio Exterior ,SEGUREXPO) amixed-ownership entity. Itcovers commercial
risks upto90percent, political risks upto85percentandextraordinary risks involved inexport
165Information based onnotifications totheGATT andWTO.
166Under Law7of1991, export finance responsibilities wereshifted fromtheExport Promotion Fund (Fondo
dePromoción deExportaciones ,PROEXPO) toBANCOLDEX. Since 1967, PROEXPO hasbeen responsible
forexport promotion andfinance.WT/TPR/S/18
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credits forgoods andservices.167Theoverall costtotheexporter forfullriskcoverage ranges from
0.12 to2.75 percentofthef.o.b. value depending onfactors such asthetypeofproduct,
destination, etc.
(xi) Export promotion andmarketing assistance
147. Since 1992 PROEXPORT (Promoción deExportaciones) ,anagency under theMinistry of
Foreign Trade, hasprovided guidance andsupport forthestrengthening ofexport activities. Itsservices
consist, interalia,ofthesupply ofinformation onmarket opportunities toasystem ofExport
Units (Unidades deExportación )which groups exporters byproduct, foreign market ormarketing
channel. Byearly 1996, thesystem comprised 100units involving 556firms; 50more units were
tobeadded bytheendoftheyear.168Inthepast, theunits focused ontheChilean, Mexican,
UnitedStates,VenezuelanandCentralAmericanmarkets,butin1996effortswerebeingmadetoprovide
greater information ontheEuropean market.
148. Advicetoindividualexportersonmatterssuchasmarketopportunities(e.g.,internationaltenders)
oritems eligible forpreferential treatment abroad isprovided initsCentres fortheExporter (Centros
deAtenciónalExportador).PROEXPORTorganizesbusinesstripsabroad,participationininternational
tradefairsandtraining courses onforeign tradeissues. Italsomaintains anetwork ofoffices inforeign
marketsofmajorinteresttoColombia.169ExportpromotionexpenditureissetatUS$18millionfor1996.
(xii) Export performance requirements
149. SIEX benefits, discussed above aretiedtoexport performance obligations. Atleast70percent
oftheestimated increase inthevolume ofoutput (defined asadditional unitsduring thelife-cycle of
themachinery) produced bytheimported (duty-free) machinery mustbeexported. Concerning raw
materials, inputs, semi-manufactures andmachinery parts, export commitments areestablished invalue
terms; these areequivalent toatleast oneandahalftimes theamount ofthetariff
quota (section (2)(iii)).170
(xiii) Free-trade zones andexport-processing zones
150. Thefree-zone régime isusedtopromote economic andregional development through foreign
trade ingoods andservices.
167Risks inthemarkets ofCosta Rica, Cuba, Guyana, Haiti, Iraq, Nicaragua, Suriname, theformer-Soviet
Republics andYugoslavia arenotcovered (Departamento Nacional dePlaneación (1994a).
168In1995, theprogramme included export products such asflowers, vegetables, educational equipment,
textiles, clothing ,footwear, leatherware, furniture, industrial machinery, autoparts, electric apparatus, articles
ofgraphic arts, toysandsoftware (ElTiempo ,16February 1996).
169These include Canada, Chile, Chinese Taipei, Ecuador, Germany, Japan, Mexico, Puerto Rico, Spain
andVenezuela.
170Articles 12and13ofINCOMEX Resolution 2386, 25November 1992.Colombia WT/TPR/S/18
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151. Between 1991 and1993, thelegislation onfree-trade zones wasupdated andnotified tothe
WTO.171Atpresent, Colombian lawprovides fortheestablishment offreezones forindustry (zonas
francas industriales debienes ydeservicios ),tourism-related services (zonas francas industriales de
servicios turísticos )andtechnology (zonas francas industriales deservicios tecnológicos ).Aprocess
fortheprivatization ofthemanagement ofthezones withaviewtoimproving theirforeign investment,
employment andexport earnings performance wascompleted on30June1994. Inthiscontext, existing
zones under public sector management wereliquidated andtheestablishment ofnewzones, administered
byprivate companies, wasauthorized.172Since 1994, requirements haveincluded theelaboration of
anecological study andthedelivery ofanenvironmental licence (licencia ambiental )before starting
construction works inafreeindustrial zone.173
152. General taxconcessions available inthefree-trade zones comprise exemption from payment
ofimport duties, surcharges, andindirect taxes aswellasfrom import licence, import registration
andforeign exchange requirements.174Free-zone operations arealsoexempt fromincome tax(impuesto
derenta)andtheremittance taxonearnings abroad.175
153. BANCOLDEX provides credit facilities, inpesos orU.S.dollars, onpreferential terms for
firms operating inthefreezones, including tourism zones. These credits areintended tocover fixed
investment, technology orinfrastructure projects. Theamount ofcredit canbeasmuch asthenet
value ofexports foraperiod notexceeding 10years. Grace periods varyfrom2to5years. Interest
forloans inpesos issetattheprevailing rateforfixed-term deposits (Depósitos atérmino fijo,DTF).
154. Currently sixoutof12authorized free-trade zones areoperational; these consist ofnine
industrial zones andthree tourist zones.176Inearly 1996, authorization fortheestablishment ofthree
more zones wasenvisaged.
155. Theauthorities areoftheviewthatthefreezones havenotyetfulfilled expectations interms
ofexports, employment andtechnology transfer. However, itishoped thatrecent privatizations will
convertthemintomoreeffectiveexport-promotioninstrumentsandallowthemtoattainhighcompetitivity
levels relative tosimilar zones inother countries.
171G/SCM/N/3/COL orL/7611/Add.11, 3August 1995. Thenewlegal framework inthisareacomprises
Law7,16January 1991; Decree 2131, 13September 1991; andDecree 971of1993.
172Decree 2111, 29December 1992; Decree 1125, 16June 1993; Decree 2480, 13December 1993.
173Decree 1258 of1994.
174Dun&Bradstreet Information Services (1994).
175G/SCM/N/3/COL
176Thenineindustrial zones arelocated inBaranquilla (new), Bogotá, Cali(new), Cartagena (three firms,
23percent oftotal zones production), Cúcuta (10firms, 14percent oftotal zones production),
LaCandelaria (new), Palmase (new), Rionegro (sixfirms, 58percent oftotal zone production) and
Santa Marta (five firms, 5percent oftotal zone production). Data correspond tothesituation in
1994 (G/SCM/N/3/COL). In1996, theauthorities indicated that85firms, involved infoodprocessing, textiles,
clothing,footwear,petrochemicals,plastics,ironandsteelmanufacturing,wereinstalledinthesezones;75percent
oftheir exports were sentabroad.WT/TPR/S/18
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156. TheColombian Government intends tobring thecurrent legislation onfreezones intoline
withtheprovisions oftheWTO Agreement onSubsidies bytheyear2003.
157. Apart fromthefree-zone régimes, several types ofspecial customs régimes (régimen especial
aduanero )apply. TheDepartment oftheIslands ofSanAndrés, Providencia andSanta Catalina (in
theCaribbean)haveenjoyedafree-portrégimesince1959.Merchandisecanbeimportedfreeofcustoms
duty, indirect taxorother restrictions. Aspecial consumer tax(impuesto alconsumo )islevied at
10percentofthec.i.f. value offoreign goods, except forfuels, construction material, capital goods
forthelocalindustry (including fisheries), medicines, andpassenger boats.177Imported goods enter
theportofLeticia (Department Amazon) freeofcustoms duties andall(national andforeign) goods
aresubject totheIVAtax.178
158. Since 1991, imports intocertain zones intheterritory ofmunicipalities oftheDepartments
ofGuajira, Nariño, Cauca andtheregion ofUrabá havebenefited fromduty-free treatment. However,
alldomestic andforeign items aresubject toIVA, except formotor vehicles assembled inColombia.179
(4) Measures Affecting Production andTrade
(i) Adjustment assistance
159. TheInstitute ofIndustrial Development (Instituto deFomento Industrial ,IFI)provides finance
inlocalorforeign currency forawiderange ofprojects inthemanufacturing sector, including working
capital, fixedassets, modernization, reconversion, technology transfer anddevelopment (section (ii)),
andenvironmental projects. Fortheperiod 1994-98, itistoprovide overall financial support of
US$900 million tosmall andmedium-size industry.
160. IFIprovides assistance fortheexpansion ofjobsorthrough programmes toincrease productivity
insmall andmedium-size firms suchasPROPYME (Programa deAtención alaPequeña yMediana
Empresa) created in1994. PROPYME, which covers firms with11to200employees, wasassigned
US$160 million for1996. Since 1994, aNational PlanforSmall-size Enterprises (Plan Nacional para
laMicroempresa) oflessthan10employees hasoperated through anetwork oftechnology-related
services available tothesefirms aswellasfinancial facilities provided through theFundfortheFinancing
ofSmall Enterprises inUrban Areas (Fondo deFinanciamiento deMicroempresas delSector Urbano,
FINURBANO). For1996, FINURBANO 'sresources stood atUS$60 million.
161. Efforts arealsoundertaken, interalia,inareas suchastheintroduction andtraining forthe
utilization ofcomputer-aided design (CAD, CAM, CIM) andautomated production processes; the
establishment ofsectoral orregional centres forproductivity andtechnological development (Centros
deProductividad yDesarrollo Tecnológico );andtheimprovement ofdissemination ofinformation
onstandards andindustrial property rights.
177Article 16ofLaw47,19February 1993.
178Decree0190,22January1994.LeticiaistheonlyColombianportlocatedontheinternationalfreeperimeter
oftheAmazon River established under ajointagreement between Colombia andPeru(Convenio deCooperación
Aduanera Colombo-Peruano )forthebenefit ofthese remote territories.
179Paragraph 2Article 5ofDecree 2817, 17December 1991; andArticle 12ofCustoms Resolution 0499,
27February 1992.Colombia WT/TPR/S/18
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162. Financial facilities through PROPYME, FINURBANO andother IFIinstruments participating
inthese programmes include conditions suchas:duration ofupto10years (fixed assets); period
ofgrace upto3years (coalmining); anddifferent rediscount ratesranging from13percent(small-size
firms) to2.5percentage points above thefixed-term deposit rate(Depósito atasafija,DTF).180
Since 1994, IFIresources havebeendirected tosectors otherthanmanufacturing. In1995, thefinancial
institutions, manufacturing andagro-industry werethemajor beneficiaries ofitscredit facilities which
weremainly destined toworking capital. Large companies absorbed more thantwothirds ofavailable
credit while PROPYME andFINURBANO accounted foranother 30percent. IFImetfinancial needs
offirms involved inthesectoral competitiveness agreements (Chapter Vandbelow).181
(ii) Assistance forresearch anddevelopment (R&D)
163. Since 1992 fiscal andfinancial incentives havebeenavailable forresearch anddevelopment
purposes (Law 6of1992). Theamount invested inscientific ortechnological research which is
undertaken inconjunction withuniversities approved bytheColombian Institute fortheDevelopment
ofHigher Studies (Instituto Colombiano paraelFomento delaEducación Superior ,ICFES) orother
institutions designated bytheNational Planning Department (Departamento Nacional dePlaneación )
isdeducted from therevenue subject toincome tax(impuesto alarenta).182Granting ofincentives
through individual contracts issubject topriorauthorization andverification ofresults bytheColombian
Fund ofScientific Research andSpecial Projects (Fondo Colombiano deInvestigaciones Científicas
yProyectos Especiales ),jointly established byIFIandtheColombian Institute forScientific and
Technological Development (Instituto Colombiano paraelDesarrollo delaCiencia yTecnología ,
COLCIENCIAS).183In1995, more thanUS$6 million were usedtofinance 21projects.
164. Thefour-year (1995-98) national programme forscience andtechnology, aimed atimproving
productivity andinnovation, includes training andresearch. ItsUS$219 million budget ispartially
funded byanIDB(Inter-American Development Bank) loanofUS$100 million. Theprogramme is
administered byCOLCIENCIAS.184
(iii) Production assistance, taxconcessions
165. Since 1974, agricultural producers havebenefited fromloans atpreferential/subsidized interest
rates; since1990, efforts havebeenmade tomove progressively toward commercial terms. Allbanks
andfinancial institutions areobliged tofinance FINAGRO 'sloanoperations tosmall producers by
purchasing agricultural development bonds (Títulos deDesarrollo Agropecuario, TDA) foranamount
equivalent to10percentoftheircommercial loans; thiscompulsory investment cannowbereplaced
byanindividual bankportfolio forthesector. Resources collected through TDAs arechannelled to
theFundfortheFinancingoftheAgriculturalSector(FondodeFinanciamientodelSectorAgropecuario,
180IFI(1995).
181IFI(1996).
182Article 158-1 ofLaw6aof1992.
183Article 6ofLaw29of1990; andDecree 591of1991 regulating themodalities ofcontracts forthe
developmentofscientificandtechnologicalactivities(porelcualseregulanlasmodalidadesespecíficasdecontratos
defomento deactividades Científicas yTecnológicas ).
184Latin American Weekly Report, 24August 1995, p.379; TheIDBProjects, (1995), p.14.WT/TPR/S/18
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FINAGRO) which grants theloans. Interest rates, paidbyFINAGRO tothebanks, aretwopercentage
points below theaverage fixed-term 90-day deposit rate(Depósitos atérmino fijo,DTF) orfour
percentagepointsbelowtheDTFratedependingonthetypeofTDA.185In1993,CapitalizationIncentive
inRural Areas (Incentivo alaCapitalización Rural ,ICR)wasintroduced andhasoperated sinceAugust
1994; thisconsists ofsubsidizing projects aimed atmodernizing theproduction andmarketing of
agricultural items (Chapter V).Since 1994, theEMPRENDER Fund hasprovided capital andfinancial
incentives forgreater participation oftheprivate sector inmarketing andprocessing agricultural
products (Chapter V).
166. Theprices charged bythepublicly owned orsemi-private institutions toagricultural producers
forsupport services (warehousing, certification, quality controls, diagnosis, licensing etc.)areseton
thebasisofcostsandmarket conditions. Pricing isadjusted annually toreflect CPIchanges; for1996
a17percentincrease wasplanned (Chapter I).
167. Inthetaxreform ofDecember 1995, resources totalling US$123 million were allocated to
indebted coffee growers.186Debt relief measures forsmall producers consist ofpaying offinterest
andcapital (uptoCol$ 3million perdebtor by31December 1994) while thosebenefiting othergrowers
(debt exceeding Col$3million by31December 1995) cover theamount resulting fromtheoriginally
agreed interest rateandthe(18percent)annual ratewhich isdue. Asstated earlier (section (2)(vi)),
finance willbeprovided through theincrease oftwopercentage points inthegeneral VAT ratewhich
willraiseUS$66 million (for1996and1997) aswellasthedepartmental growers 'committees (US$57
million intheperiod 1996-2000).
168. According toinformation accompanying Colombia 'sWTO Schedule LXXVI, thecostof
assistance provided toagriculture bytheMinistry ofAgriculture invarious forms (general services,
supportofagrarianadjustmentinvestment,paymentsrelatedtoenvironmentalprogrammes)wasestimated
atanaverage annual amount ofUS$227 million intheperiod 1990-91.187Thistypeofassistance to
producersisexcludedfromreductioncommitmentsundertheUruguayRoundAgreementsonAgriculture.
169. Prices forelectricity, natural gasandfuelsmonitored bytheGovernment 'sNational Energy
Commission, have been setatlower thanworld market level (although notbelow cost). The
Government 'sintention istoraiseprices toopportunity costsorinternational levels, andthishasalready
happened forfueloilandpropane gas(Chapter V).Pre-tax wholesale prices ofpetrol anddiesel for
thedomestic market aresetatabout 60to70percentofworld prices bytheState-owned company
ECOPETROL.
(iv) Pricing andmarketing arrangements
170. Since December 1991, minimum guaranteed prices (Precios Mínimos deGarantía )haveapplied
toagricultural products; theyconstitute theminimum prices forselling crops inthedomestic market
(Chapter V).They currently apply towhite andyellow maize, rice,beans, sesame andsoybeans.188
185ElTiempo ,1February 1996.
186Articles 14and276ofLaw223of1995.
187Annex Table 4contained inWTO document G/AG/AGST/COL.
188Ministry ofAgriculture Resolution No.015of31January 1996. Thisisapplied under Article 50ofLaw
No.101c/1993.Colombia WT/TPR/S/18
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Themechanism isreportedly intended toeaseinvestment decisions ofthenational producers. Toreflect
international trends, prices aredetermined onthebasis ofthefloor price intheAndean Price Band
(section (2)(ix)(a)) plusimport costs (e.g., duties, charges) minus drying andwarehousing expenses;
thisdeduction keeps minimum guaranteed prices below import costs. Minimum prices areadjusted
every sixmonths bytheMinistry ofAgriculture.
171. Inagriculture, intervention prices (precios deintervención )aresetonanadhoc,temporary
basisforregional assistance purposes (section (v)andChapter V)aswellastocompensate formarket
imperfections. These differ according totheregion. Since 1995 theobjective hasbeentoguarantee
theincome-yielding capacity ofagricultural production inzones covered bytheNational Planfor
Alternative Development (Plan Nacional deDesarrollo Alternativo, PNDA).189
172. IDEMA andother State-owned companies (section (2)(xiii) andChapter V)are,interalia,
responsible forensuring adequate marketing channels (including retail trade inruralareas andurban
areas where basic needs arenotsatisfied) foragricultural andfisheries products. Forthispurpose,
itmay, butdoesnotcurrently, grant credit tocommunity organizations.
173. Theprice, paidbytheNational Coffee Fund (FNC), ranges between 30and85percentof
thecoffeeexportprice,dependingontheFund'sfinancialsituation.Thedifferencebetweentheproducer
andexport price reflects transport, marketing, regional programmes, stock accumulation andother
costs.
174. Since theendof1991, consumer price controls havebeeneliminated, except those affecting
essential medicines, public household services (servicios públicos domiciliarios )190andpublic transport
inurban areas.191Increases inretail prices ofthemedicines inquestion, domestic andforeign, are
monitored bytheMinistry ofEconomic Development, while aNational Committee onPrices of
Medicines (Comisión Nacional dePrecios deMedicamentos )formulates policy.192Upon consultation
withmanufacturers, maximum prices canberevised onthebasisofchanges intheprices ofrawmaterials
orinputs affecting production costs.193
175. AspartofitsUruguay Round commitments, Colombia iscommitted tocutting financial support
toagriculturalproducersby13.3percentortoUS$345millionbetween1995and2004.194Incalculating
theinitial amount oftheAggregate Measurement ofSupport (AMS), average expenditure forthebase
189ThePNDA, aprogramme exclusively destined tosmall-size producers, isaimed atproviding sustainable
legalproduction alternatives toillicit drugproducers. Fortheperiod 1995-98, thePNDA expenditure isestimated
atUS$300 million.
190I.e:water supply, sewage, electricity supply, gasdistribution, telecommunications inrural areas.
191Between 1991 and1992 more than16items, including certain beverages (e.g., softdrinks, beers), nylon
fibres, greycement, matches, wheels, tyres, motor vehicles, ammonia, soaps anddetergents, were freed from
price controls.
192Article 245ofLaw100of1993. TheCommission consists oftheMinisters ofEconomic Development
andHealth andarepresentative from thePresidency oftheRepublic.
193Resolutions 044of1992 and1746 of1993.
194Article 3oftheAgreement onAgriculture; PartIVSection I,Schedule LXXVI, 15April 1994.WT/TPR/S/18
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period, 1986-88, includes budgetary outlays forspecific products andsubsidized preferential loans
aswellasthecostoftheproducer price support mechanism (about 71percentofthetotalAMS),
discussed earlier.195Inthebaseperiod, average producer (administered) prices forrice,maize, sorghum,
wheat, soybeans, driedbeans, barley, andsesame seeds (ajonjolí )ranged from19to176percentabove
international prices.
(v) Regional assistance
176. Inagriculture, intervention prices (precios deintervención )are,interalia,utilized toreactivate
theeconomy ofregions which depend onasingle crop.
177. Themain incentives provided forthemanufacturing andservices sectors arefound inthe
free-zones andspecial customs régimes (section (3)(xiv)). TheInstitute ofIndustrial Development
(Instituto deFomento Industrial ,IFI)hasencouraged industries tomove toborder andcoastal areas
bygranting loans onconcessional terms. Since 1985, investment infirms established inareas affected
bythevolcano Nevado delRuiz,havebeenexempt from therevenue tax(impuesto alarenta).
(vi) Competition policy
178. Both Andean Group andnational legislation apply incompetition policy matters. Recent
Andean Group provisions aimtoprevent orcorrect distortions caused byrestrictive business practices,
agreements, parallel action, jointoperations orabuse ofdominant position, which could restrict, impede
orweaken competition within thesub-region.196
179. Inthepast,national competition legislation hasoften beenusedtoprovide alegalbasis for
theoperation ofprice controls rather thanthepromotion ofunrestricted competition, asstipulated in
thelegislation.197However, inaneffort tostrengthen thepro-competitive aspects ofthelaw,in1992,
specific anti-competitive practices weredefined inDecree 2153 andactions tobetaken against such
practices were spelled out.198
180. TheSuperintendency ofIndustry andCommerce (Superintendencia deIndustria yComercio ,
SUPERINDUSTRIA) oftheMinistry ofEconomic Development, restructured in1992(sections (2)(xv)
and(4)(vii)), interalia,oversees theimplementation ofcompetition rulesanddefends consumers against
abuses despite theabsence ofexplicit consumer protection legislation. Itsinvestigations onspecific
business practices, undertaken onitsownaccord orwhen acomplaint isfiled, mayleadtosuspension
ormodification oftheanti-competitive practice inquestion. Fines ofupto300minimum monthly
wages canbeimposed onmanagers orlegalrepresentatives; forfirms, these canattain 2,000 such
wages. Between September 1993 and11March 1996, 149cases ofmergers (concentraciones
jurídicas-económicas) investigated bySUPERINDUSTRIA. Amendments aretobeintroduced tothe
legislation sothatSUPERINDUSTRIA canpublicly disclose information relating toitsinvestigations
onmergers.
195Tables 6and8,WTO document G/AG/AGST/COL.
196Andean Group Decision 285, 21March 1991.
197Law 155, 24December 1959.
198Articles44to52ofDecree2153,30Decemb er1992,defineconcepts(illegalagreemen tsandaction,abuse
ofdominant position, mergers) andactions tobetaken intheir respect.Colombia WT/TPR/S/18
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181. There appears tobeaconcentration ofownership inanumber ofsectors.199Forexample,
onebusiness group controls anumber ofbanks andhasextensive interests inthecommunications media,
inaddition toproductive andcommercial activities. Itseems thatinpractice SUPERINDUSTRIA 's
scope ofaction hasbeenlimited bylegalandconstitutional authorizations. Itcannot intervene inthe
media andcommunications sector onitsownaccord; despite itsawareness ofviolations toexisting
competition provisions itcannot actunless anindependent complaint isbrought.
(vii) Enforcement ofintellectual property rights
182. Since 1975, Colombia hasbecome asignatory tomajor international conventions onintellectual
property, trademarks, copyrights andpatent protection, andisamember oftheWorld Intellectual
Property Organization (WIPO).200
183. Apart fromtheratification oftheUruguay Round Agreements (Chapter II),nolegislation has
yetbeenintroduced tobring domestic legislation intoconformity withtheprovisions oftheAgreement
onTRIPS asColombia intends toavailitselfofthefive-year transition period available fordeveloping
countries. Atthisstage, noindication canbegiven ontheareas where changes mayberequired.201
Colombia grants m.f.n. andnational treatment inthisarea.
(a) Industrial property
184. Industrial property protection isbased onrecent Andean Group provisions, effective since
1January 1994.202Wide-ranging Andean Group provisions cover patents, industrial designs, utility
models, industrial secrets (undisclosed information), trademarks (including exclusive rights), trade
names andgeographical indications.
185. Until 1992, alllicensing agreements fortheuseofaforeign patent, trademark ortechnology
hadtobeapproved bytheNational Royalties Committee (Comité Nacional deRegalías )oftheMinistry
ofEconomic Development andregistered bytheExchange Office oftheCentral Bank.203Theapproval
criteria included several considerations relating tosocial andeconomic development, theeffects on
thebalance-of-payments andColombia 'sinternational commitments.
199IDB(1996), pp.47,53and54.
200Between 1975 and1994 thefollowing conventions were signed andimplemented bylawinColombia:
(i)Law48of1975 covering theUniversal Copyright Convention andtheRome Convention fortheProtection
ofPerformers, Producers ofPhonograms andBroadcasting Organizations; (ii)Law33of1987 covering theBerne
Convention fortheProtection ofLiterary andArtistic Works; (iii)Law23of1992, covering theGeneva
Phonograms Convention; (iv)Law26of1992 covering theGeneva Treaty ontheInternational Registration of
AudiovisualWorks;(v)Law178of1994,ParisConventionfortheProtectionofIndustrialProperty;(vi)Law243
of1995 covering theUnion fortheProtection ofNew Varieties ofPlants (UPOV) Convention.
201TheCustomsServicehasnoinstructionsfordealingwithfalsified/counterfeitgoods.Since1991,Colombia
hasbeen onthe"watch list"under the"Special 301" provision ofthe1988 Trade ActoftheUnited States.
202Andean Group Decision 344,entitled Common Régime onIndustrial Property (Régimen Común sobre
Propiedad Industrial ),21October 1993, andregulated byDecree 117, 14January 1994.
203ThisrequirementwasrepealedbyAndeanGroupDecision291,29March1991,(ChapterIII)andDecree259
of1992.WT/TPR/S/18
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186. Atpresent agreements involving theimportation oftechnology, technical services, basic
engineering, trademarks, patents andother technology-related contracts must beregistered with
INCOMEX.Registrationcanberefusedwhentheagreementcontainsprovisionsrestrictingcompetition,
asdefined inAndean Group Decision 291(Chapter III).
187. Regarding enforcement procedures inrespect oftheprovisions ofAndean Group Decision 344,
Articles 534to618oftheCode ofCommerce (Código deComercio) contain sanctions against
infringement ofintellectual property rights.
188. Patents andtrademarks areregulated bySUPERINDUSTRIA which, asdiscussed earlier, also
hasresponsibilitiesintheareasofstandardsandcompetitionpolicymatters(sections(2)(xv)and(4)(vi)).
Registration isentrusted toSUPERINDUSTRIA 'SDivision ofDistinctive Signs (División deSignos
Distintivos ).Allregulations relating toindustrial property matters arepublished intherelevant
gazette (Gaceta delaPropiedad Industrial ).
189. Between 1992 and1993 SUPERINDUSTRIA underwent major modernization intheareaof
patents andtrademarks which resulted inmore effective management oftheapplication process. By
theendof1994 ithadcleared upthebacklog ofapplications from previous years.
Patents
190. Recent Andean Group provisions haveextended thelength ofpatents to20years, including
intheareaofpharmaceuticalswherethepriorten-yearrestrictionhasbeenlifted.204Compulsorylicences
(licencia obligatoria )canbeawarded threeyears aftergrant orfouryears afterapplication ofthepatent,
ifaninterested partyhasnotbeenabletoobtain acontractual licence (licencia contractual )onreasonable
terms oronthegrounds oflegitimate public interest.205Theburden ofproof inaninfringement case
isonthedefendant. Acompulsory licence canbegranted when apatent isnotconsidered asbeing
adequately worked; working requirements aretobeeliminated upon fullimplementation ofTRIPS
Agreement.
191. Notransitional ("pipeline") protection isprovided forpharmaceuticals. Thisabsence of
transitional protection iscovered bytherelevant provision oftheAndean Group Decision.206An
exception tothisprovision isfeasible onlywithprior agreement among Andean Group countries.
192. Law100,23December 1993, establishes arégime providing onlygeneric pharmaceutical
products tothepopulation under Social Security orHealth Promoting Entities. Reportedly, ifenforced,
thislawwould leadtothedisappearance ofbrand-name pharmaceuticals intheColombian market.
193. Parallel imports areallowed from countries where aproduct islegally marketed.207
204Article 30ofAndean Group Decision 344, 21October 1993.
205Article 42ofAndean Group Decision 344, 21October 1993.
206Article 2ofAndean Group Decision 344(novedad mundial ).
207Article 35and106ofAndean Group Decision 344, 21October 1993.Colombia WT/TPR/S/18
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194. Following theintroduction ofAndean Group Decision 344in1993, since July 1994,
490applications forpatents forpharmaceutical products andprocesses have been filed before
SUPERINDUSTRIA; more thantwothirds havebeenofU.S.origin.
195. Andean Group provisions fortheprotection oftherights ofproducers ofplantvarieties have
been adopted byColombia.208Producer certificates (certificados deobtentor )maybegranted to
producers ofnewvarieties afterbeing entered inthenational register ofprotected varieties (registro
nacional devariedades vegetales protegidas ).Theduration ofthecertificates ranges between 15and
25years, depending onthetypeofplant. ASub-regional Committee fortheProtection ofVegetable
Varieties (Comité Subregional paralaProtección delasVariedades Vegetales )istoprepare aninventory
onexisting biodiversity inthesub-region; itisalsotoharmonize procedures, elaborate technical details
andpropose common standards inthisarea.
Trademarks
196. AndeanGroupDecision344defineswell-knowntrademarks.Oppositiontotrademarkregistration
canbemade byanyperson inanyAndean Group country within aperiod of30working daysfrom
thedateofpublication oftheapplication forregistration. Ifsimilar marks areowned bydifferent
individuals indifferent countries, theymayonlymarket theproducts covered bythetrademarks in
theircountryoforiginunlesstheyhavearegisteredagreementwiththelocalowner.UndertheDecision,
thecancelation period fornon-use hasbeenreduced fromfivetothree years. Trademark registration
isvalid fortenyears andcanbeextended forperiods ofsimilar duration. Industrial designs are
registered foraneight-year period.
197. Atrademark maybelicensed orassigned. Domestic legislation requires registration anduse
ofthetrademark inColombia.
(b) Other Intellectual property
198. Protection ofintellectual property rights (national andforeign) iscurrently based ondomestic
lawsandAndean Group Decision 351,which hasbeenineffect since 1January 1994, aswellas
international conventions citedearlier (section (vii)).209Thenewlegislation covers abroad range of
works, including computer software programmes anddatabases, videos andsound recordings.210It
includes ancillary rights which, inaddition toprotection fortheauthor orcreator ofacopyrighted
work, alsocover therights pertaining totheinterpreter ortranslator ofacopyrighted work. Authors
208Andean Group Decision 345, entitled Common Régime fortheProtection ofProducers ofVegetable
Varieties (Régimen Común deProtección alosderechos delosObtentores deVariedades Vegetales ),regulated
byDecree 533,8March 1994; Decree 2468, 4November 1994; andICARegulations 1893 and3123 of1995.
209Law 44,5February 1993, which modified andcomplemented Law23of1982; Andean Group Decision
351,entitled Common Régime onAuthor 'sRights andRelated Rights (Régimen Común sobre Derecho deAutor
yDerechos Conexos )(17December 1993) regulated byDecrees 460(16March 1995) and162(22January 1996).
210ChapterVIIIofAndeanGroupDecision351isdevotedtotheprotectionofsoftwareanddatabases.Although
software protection issimilar tothatofliterary works, itsprovisions stipulate indetail howsuchaprogramme
canbeused.Databasesareprotectedtotheextentthattheselectionandgroupingofinformationconstitutegenuine
work.WT/TPR/S/18
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rightsareprotectedfortheauthor'slifetimeplus50years(AndeanGroupDecision)or80years(national
law),exceptforsoundrecordingsandcopyrightworksofjuridicalpersonswhichbenefitedfrom30years
protection, untilanincrease to50years wasenacted in1993 (Law 44).
199. Noprotection isavailable forsemiconductor mask work layout designs.
200. Copyrights areregulated bytheCopyrights unitoftheMinistry ofInterior. Registration
procedures forworks andproducts arebeen carried outbytheNational Registry ofAuthors '
Rights (Registro Nacional delDerecho deAutor ).211
201. Colombia applies anincome withholding taxof24percentoncomputer software which, when
combined witharemittance taxofnearly 10percentonroyalties, yields anaggregate withholding
taxgreater than30percentonroyalty remittances toforeign licensors.
202. The1993legislationsignificantlyincreasedpenaltiesforcopyrightinfringement.Theauthorities
arenowempowered todestroy pirated material andtoclose andcancel theoperating licence ofany
establishment where copyright infringement hasoccurred. They haveincreased efforts toreduce video
andaudio piracy; record-level seizures tookplace in1994; between July1995 andJune1996,
10,280 pirated videos wereconfiscated. Regarding software piracy, inMarch 1996, 1,500 compact
discs (each containing 75programmes) and5,000 laserdiscs aswellasthemachinery usedfortheir
production were seized. Concerning literary works, 453boxes containing books and7,000 copies
ofwork ofnational authors were confiscated between April andMay1996.
(viii) Other measures
203. TheConstitution provides forenvironmentally sustainable economic development andclarifies
therôleoftheState inensuring reasonable utilization ofnatural resources aswellasprotecting the
environment.212Environmental legislation isinforcewithrespect topollution (air,water, noise), forest
management, production, distribution anduseofchemicals (e.g., forwater treatment, pesticides, etc.)
imports ofdangerous waste, andprotection oftheozone layer. Reportedly, thenewlegislation isbased
onstringent foreign standards which aredifficult toenforce astheydonottakeintoaccount Colombia 's
environmental,socialandeconomicconditions.Tocopewiththisproblem,newenvironmentalstandards
arebeing developed withspecific control systems corresponding tonational conditions andpriorities.213
Bansonthecapture, exploitation, processing andmarketing ofwhite shrimp andother species have
beenintroduced. Inmanufacturing, where thesixbiggest industrial centres generate 80percentof
airpollution inthecountry, 25mainindustry associations havesigned acleaner-production agreement
tocontrol toxic emissions aswellastoanalyse theirvolume andcomposition bytheendof1995;
other undertakings include efforts tomitigate social andenvironmental risksandtoguarantee better
useofnatural resources.214
211Decree 460, 16March 1995.
212Articles 79and80.
213UNCTAD document TD/B/WG.6/Misc.6, p.5.
214Latin American Economy &Business, August 1995.Colombia WT/TPR/S/18
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204. Institutional aspects were reinforced in1993 with theestablishment oftheMinistry of
Environment (Ministerio deMedio Ambiente )andthere-structuring ofregional autonomous
corporations (Corporaciones Autónomas Regionales ).215
205. Inrecent years Colombia hassubscribed toallmajor environment-related international
agreements216,andparticipated innegotiations ontherestructuring oftheGlobal Environment
Facility (GEF).217Thenational development planfortheperiod 1994-98, ElSalto Social (discussed
inChapter I),which refers, interalia,toaction leading towards cleaner production, plans tochannel
about US$1.6 billion toenvironmental projects. For1996, US$200 million areavailable fromInstitute
ofIndustrial Development (Instituto deFomento Industrial ,IFI)forthefinancing ofmanufacturing
projects intended toreduce environmental effects.
206. Colombian producers andexporters areconcerned about cost-raising andquestionable
environmental measures inforce ortobeadopted incertain foreign markets. These include unilateral
trade restrictions which affect tuna(section (3)(iv) onexport prohibitions, Chapter II)andexports of
shrimp totheUnited States; emerging (easily recyclable) packaging standards forcoffee andfruit,
andproduction conditions forflowers (e.g., inGermany); andthepossible introduction ofeco-labelling
requirements forcertain textile items (e.g., t-shirts andbed-linen intheEU).
215Law 99of1993.
216Colombia isasignatory totheBasel Convention ontheControl ofTransboundary Movements ofHazardous
WastesandtheirDisposal(toberatifiedin1996),theFramew orkConventiononClimateChange,theConvention
onBiologicalDiversity,theMontrealProtocolonOzonedepletingSubstancesandtheInternationalTropicalTimber
Agreement.
217GEF isfunding, onconcessional terms, projects andprogrammes indeveloping countries. Itsprogrammes
arejointly managed bytheUNDP, theUNEP andtheWorld Bank.