WORLD TRADE
ORGANIZATIONG/VAL/N/1/COL/1
23 January 2001
(01-0343)
Committee on Customs Valuation Original:  Spanish
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994
COLOMBIA
The following communication, dated 10 January 2001, has been received from the Permanent
Mission of Colombia.
_______________
Pursuant to the Decision of the Committee on Customs Valuation of 12 May 1995 and to
Article 22.1 of the Agreement on Customs Valuation, I have the pleasure of notifying the Committee
of Colombia's legislation in the area in question.
Annexed hereto are the following documents containing the said Colombian legislation:- Title VI of Decree 2685 of 28 December 1999 amending the Customs legislation and- Title VI of Resolution 4240 of 2 June 2000 of the National Customs and Excise
Directorate regulating Decree 2685 of 29 December 1999.G/VAL/N/1/COL/1
Page 2
CONTINUATION OF DECREE AMENDING
THE CUSTOMS LEGISLATION
SHEET NO. 99
No correction declaration will be required if the customs authority has issued an official
correction or revision assessment.
If a correction declaration is submitted, the declarant must assess and pay, in addition to any
additional taxes and interest that may accrue, the penalties laid down in Title XV of this Decree,
where applicable.
Paragraph .  If the purpose of the correction declaration is to amend the value initially
declared, a new Andean declaration of value must be submitted in support of the correction
declaration.
SECTION III
AMENDMENT OF THE DECLARATION
Article 235.  Amendment of the declaration
The declarant may amend his import declaration, without giving rise to any penalty in the
circumstances indicated in this Title, for the pr ocedures that so provide and to terminate the
processing or assembly procedure or a temporary importation procedure.
CHAPTER VIII
TARIFF CLASSIFICATIONS
Article 236.  Tariff classifications
At the request of private individuals, the Directorate of Taxes and National Customs may
issue tariff classifications, by Resolution, in accordance with the National Customs Tariff.
Moreover, if the Directorate considers it necessary to harmonize the criteria to be applied for
the classification of goods, in accordance with the National Customs Tariff, it may issue tariff
classifications of a general nature ex officio, by reasoned Resolution.
For the purposes of this article, the Directorate of Taxes and National Customs shall establish
the procedure for issuing the above-mentioned tariff classifications.
There shall be no appeal against tariff classifications.
TITLE VI
CUSTOMS VALUATION
Article 237.  Definitions for applying the ru les on Customs valuation of  the GATT 1994
Valuation Agreement and Decisions 378 and 379 of the Commission of the Cartagena
Agreement
In addition to the definitions given in article 15 of the GATT 1994 Valuation Agreement and
its Interpretative Note, the terms used in th is Title shall have the following meaning:G/VAL/N/1/COL/1
Page 3
Agreement
The Agreement on Implementation of Article VII of the General Agreement on Tariffs and
Trade 1994 or Valuation Agreement of the World Trade Organization.
Approximate time (“at or about”)
A period of not more than 90 calendar days before or after the date of occurrence of the event
in question.
Time of exportation
The date of issue of the transport document.
Time of importation
The date of arrival of the goods in the national customs territory, established in accordance
with the customs regulations in force.
Commercial level
The position occupied by the buyer-importer in domestic trade, whether it be as wholesaler,
retailer or consumer, regardless of who his foreign supplier may be and the quantity purchased.
Official price
The price or value fixed by the Customs Directorate, by Resolution, for the purpose of
determining the basis of assessment, which shall be mandatory.
Reference price
The price established by the Customs Directorate and used as a guide for checking the value
declared for identical or similar goods during the inspection process.  Prices incorporated in the
Customs database as a result of valuation studies or taken from other specialized sources shall also beregarded as reference prices.
Generally accepted accounting principles
In accordance with the General Interpretative Note to the Agreement and
Decree 2649 of 1993, or its amending or supplem enting provisions, these are the set of basic
standards and rules that must be observed in recording and reporting for accounting purposes the
business affairs and activities of natural or legal persons.  Accounts based on these principles will
make it possible to identify, measure, classify, record, interpret, analyze, evaluate and report the
operations of an economic entity clearly, reliably and in full.
Provided they are separately indicated
This expression relates to information or data on expenses, costs, charges, profits and the like
relating to an economic activity that are known or indicated separately from the price actually paid or
payable in the commercial invoice, the contract of sale, the freight contract, or some other commercial
document submitted for Customs valuation purposes.G/VAL/N/1/COL/1
Page 4
Test value
Transaction value or customs value proposed for the purposes of Article 1.2(b) of the
Agreement that has previously been accepted by the customs authority.  Must be used for comparison
purposes and never converted into a substitute value.
Customs value of the imported goods
Value of the goods for the purpose of collecting ad valorem  customs duties, established in
accordance with the procedures and methods of the Agreement, in conformity with Decision 378 of
the Commission of the Cartagena Agreement and this Decree.
Sale
Contract by means of which the ownership of a thing is transferred in exchange for a sum of
money or an instrument representing such a sum.
Related sales
Sales in which some condition or consideration relating to the price, the sale of the goods or
both has been agreed.
Successive sales
Series of sales to which the goods are subject before importation.
Related persons
Two persons shall be deemed to be related only if they fall into one of the categories specified
in Article 15.4 or 5 of the Agreement.  For the purpose of applying Article 14 of Decision 378 of the
Commission of the Cartagena Agreement, the spouse or partner and relatives up to the fourth degree
of consanguinity, second degree of affinity or by adoption shall be deemed to be related.
Article 238.  Andean declaration of value
This is a supporting document for the import declaration containing technical information on
the facts and circumstances of the commercial transaction relating to the imported goods that
determined the customs value declared as the basis of assessment.
Article 239.  Documents in support of the Andean declaration of value
Documents which justify or confirm any of the particulars entered in the boxes that make up
the Andean declaration of value are deemed to be supporting documents.
Article 240.  Andean declaration of value form
The Andean declaration of value must be made out on the official forms prescribed by the
customs authority for the purpose, in accordance with Andean Decision 379, or by electronic means if
so authorized.  In exceptional circumstances, authorization may be given for declarations of value tobe made out on non-official or approved forms.G/VAL/N/1/COL/1
Page 5
Article 241.  Obligation to make out an Andean declaration of value
If the total f.o.b. value declared in the import declaration and contained in the invoice or
contract is equal to or greater than five thousand United States dollars (US$ 5,000), the declarant must
make out and sign an Andean declaration of value form for each invoice.
The importer shall be directly responsible for the truth, accuracy and completeness of the
particulars entered in the Andean declaration of value and in the accompanying documents necessary
for the determination of the customs value of the goods.
The obligation to make out an Andean declaration of value shall apply in the case of split or
multiple consignments, or split values, shipped by the same supplier to the same consignee, whichtogether equal or exceed five thousand United States dollars (US$ 5,000).
Even if there is no obligation to make out an Andean declaration of value, the corresponding
customs value must be entered in the import declaration and the method of determining it must be
indicated.
Article 242.  Goods processed in industrial free zones for goods and services
For goods processed in industrial free zones for goods and services, an Andean declaration of
value must be made out at the time of presentation and acceptance of the import declaration for thefinished product.  The customs value shall relate on ly to the value of the foreign raw materials and
inputs used in manufacturing the goods.
Article 243.  Goods placed under the processing or assembly procedure
For goods imported under the processing or a ssembly procedure, an Andean declaration of
value must be made out at the time of presentation and acceptance of the import declaration for this
procedure.  For this purpose, recourse may be had to the simplified procedure for processing the
Andean declaration of value.
Article 244.  Exemption from the obligation to make out an Andean declaration of value
An Andean declaration of value must be made out whenever an import declaration is required
by the customs authorities.  Nevertheless, declar ants may be exempted from the obligation to make
one out in the following cases:
(a) imports whose f.o.b. value does not exceed five thousand United States dollars (US$ 5,000).(b) donations intended to cover non-profit health, food supply, technical assistance, welfare,
education, or scientific and cultural research services made to the National Government, the
Departments, the Municipalities, the Capital District, the Special Districts, Public
Establishments and Official Entities.
(c) imports intended to cover non-profit health, food supply, technical assistance, welfare,
education, or scientific and cultural research services effected by the National Government,
the Departments, the Municipalities, the Capital District, the Special Districts, Public
Establishments and Official Entities.
(d) imports by diplomatic staff or accredited international organizations.G/VAL/N/1/COL/1
Page 6
(e) donations and imports intended to provide relief in natural disaster situations and similar
national emergencies.
(f) the importation of luggage and household effects governed by this Decree, temporary
admission for inward processing, short-term temporary importation for re-exportation in thesame state, re-importation in the same state and the introduction of goods into free zones.
Article 245.  Retention of the Andean declaration of value and supporting documents
The Andean declaration of value and supporting documents shall be retained in accordance
with Article 121 of this Decree.
Documents authenticating commercial and financial relations, the conditions of use of
patents, designs, models, processes and/or trademarks, contracts, expenses and, in general, all those
that support the commercial operation shall also be retained.
Article 246.  Simplified procedure for the Andean declaration of value
At the request of the importer, the customs au thority may authorize the simplified procedure
for submitting the Andean declaration of value form.
Article 247.  Methods of determining customs value
According to the Agreement, the following me thods may be used for determining customs
value:
Transaction value
Under the provisions of Articles 1 and 8 of the Agreement and their Interpretative Notes.
Transaction value of identical goods
Under Article 2 of the Agreement and its Interpretative Note.
Transaction value of similar goods
Under Article 3 of the Agreement and its Interpretative Note.
Deductive method
Under Article 5 of the Agreement and its Interpretative Note.
Computed value method
Under Article 6 of the Agreement and its Interpretative Note.
Method of last resort
Under Article 7 of the Agreement and its Interpretative Note.
Article 248.  Successive application of valuation methodsG/VAL/N/1/COL/1
Page 7
If the customs value cannot be determined in accordance with the rules of the transaction
value method, it shall be determined by successively resorting to each of the subsequent methods for
which the Agreement provides until one enabling it to be established is found, unless the importer
requests and obtains from the customs authority authorization to reverse the order of application of the
deductive value and computed value methods.
Article 249.  Commercial invoice and other supporting documents
The commercial invoice must show the price actually paid or payable directly to the seller and
must be issued by the seller or supplier of the goods.
Invoices and other supporting documents that may be required for import purposes must not
be smudged, must not have been corrected and must not display any signs of tampering.
Article 250.  Discounts received
For customs valuation purposes, in order for discounts or rebates granted by the seller of the
imported goods to be accepted the following requirements must be met:
(a) they must relate to the goods being valued;(b) the importer must actually benefit from the discount or rebate;(c) they must be indicated on the invoice separately from the price of the goods.
Article 251.  Buying commissions
When a buyer or importer compensates his foreign agent for services rendered in representing
him abroad in connection with the purchase of the goods being valued, that compensation shall
constitute a buying commission and shall not form part of the customs value of the goods.  For the
buying commission to be disregarded or deducted from the price paid or payable, the customs
authority must have evidence that it has been paid.
Article 252.  Provisional values
Provisional customs values may be declared in the following circumstances:
(a) if the negotiated price has not been definitively determined.  In this case, the importer must
indicate the circumstances in the Andean declaration of value and attach the correspondingwritten contract in justification;
(b) if the amounts corresponding to Article 8.1(c) and (d) of the Agreement are not known at the
time of importation and are declared on the basis of an estimate.  The circumstances must be
set out in a written contract and indicated in the Andean declaration of value;
(c) if the requirements of Article 1 of the Agreement are not met and it is therefore not possible
to value the goods using the transaction value method.
In any of these circumstances, the final determination of customs value may be deferred.  The
importer may remove his goods from customs by paying the customs duties corresponding to the
provisional value declared.G/VAL/N/1/COL/1
Page 8
In the situations envisaged in subparagraphs (a) and (b) the importer shall provide security.
The amount and term of the security and the corresponding procedures and other conditions shall be
established by the customs authority.
In the cases envisaged in subparagraphs (a) and (b), if the importer becomes aware of the
definitive customs value, he must submit a correction declaration within six (6) months of the date of
presentation and acceptance of the import declaration, indicating the definitive value and assessing
and paying the customs duties attributable to the higher declared value, where appropriate.
In the situation envisaged in subparagraph (c), when the importer is officially notified of the
definitive customs value, he must submit a correction declaration within the following month, paying
the higher duties corresponding to the difference between the value provisionally declared inaccordance with the above and the definitive value, if any.
These corrections shall not give rise to the application of any penalty.
Article 253.  Official prices
The Director of Customs may establish official prices for determining the basis of assessment.
Article 254.  Release of the goods
If there is the dispute with respect to the customs value declared and/or the supporting
documents, or if it is not possible to determine the value at the time of importation, the goods may be
released, subject to the provision of security, under the terms of Article 13 of the Agreement and
Article 128.5 of this Decree and in accordance with the conditions and procedures prescribed by the
customs authority.
Article 255.  Currency conversion
The customs value of the goods, determined in accordance with the rules of customs valuation
and expressed in United States dollars, shall be converted into Colombian pesos by considering the
representative market exchange-rate provided by th e Superintendencia Bancaria for the last working
day of the week prior to that in which the import declaration is presented and accepted.
If any of the elements relating to customs value is expressed in a currency other than the
United States dollar, it shall be converted into the latter currency by applying the exchange-rate
provided by the Banco de la Republica for the last working day of the week prior to that in which the
import declaration is presented, unless the parties have negotiated a fixed exchange-rate, in whichcase the latter shall be applied, provided that a contract of sale or equivalent document specifying that
fixed exchange-rate is produced.
If the transaction currency is not among those published by the Banco de la Republica, a rate
of exchange certified on the basis of the prices quoted or transactions carried out by a commercialbank in Colombia or by the commercial section of the embassy of the country concerned accredited to
Colombia.
Article 256.  Burden of proof
If the customs authority asks the importer to provide documents and information necessary to
establish that the declared customs value corresponds to the real transaction value and to the terms of
the Agreement, the burden of proof shall fall on the latter.G/VAL/N/1/COL/1
Page 9
Article 257.  Fixed value adjustments
The customs authority may make fixed value adjustments if the additions mentioned in
Article 8 of the Agreement must be made repeatedly for each importation effected in the same
circumstances by the same importer.  Moreover, it may revise the fixed value adjustment if the factsor commercial circumstances on which determination is based should change or at the intervals and in
the circumstances determined by the customs authority.
Article 258.  Provision of information
Anyone from whom information is requested sh all supply it in good time for the customs
authority to verify the declared value and provide evidence to support the determination of that value,
in conformity with the provisions of this Decree and the Agreement.
If information supplied for customs valuation purposes is by nature confidential or provided
on a confidential basis by the importer, it shall not be disclosed by the customs authority without the
specific permission of the person or government supplying it, except under a court order, inaccordance with the provisions of Article 10 of the Agreement.
Article 259.  Interpretation and application
The valuation rules contained in this Decree shall be interpreted and applied in accordance
with the terms of the Agreement and Andean Decisions 378 and 379 of the Commission of the
Cartagena Agreement.  Moreover, for their interp retation and application reference may be made to
the Advisory Opinions, Commentaries, Explanatory Notes, Case Studies and Studies of the Technical
Valuation Committee of the World Customs Organization (WCO), as well as to the Decisions of the
Customs Valuation Committee and other documents produced by the Committees in question.
SHEET NO. 64 OF THE RESOLUTION REGULATING
DECREE 2685 OF 28 DECEMBER 1999
TITLE VI
CUSTOMS VALUATION
CHAPTER I
ASPECTS RELATING TO THE DECLARATION OF VALUE
Article 158.  The Andean declaration of value form
The particulars of the commercial transaction relating to the imported goods, together with
details of the constituent elements of the customs va lue, must be entered in the Andean declaration of
value, the official form established by the Directorate of Taxes and National Customs for the purpose.
Article 159.  Processing of the Andean declaration of value
For the Andean declaration of value to serve as a document in support of an import
declaration, correction declaration, legalization declaration or amended declaration, once it has beenmade out and the customs value determined, the relevant information must be transferred to the
corresponding boxes of the respective declaration.G/VAL/N/1/COL/1
Page 10
In making out the Andean declaration of value form the following aspects shall be taken into
account:
1. In each Andean declaration of value up to two tariff subheadings may be declared, provided
they are supported by a single commercial invoice.
2. Sheets 1 and 2 of the Andean declaration of value must be made out, provided that the
transaction value method can be applied, that is to say, in cases of importation preceded by a sale, and
provided that the other requirements of Article 174 of this Resolution are met.
If the transaction value method cannot be applied because of the nonfulfilment of any of the
requirements mentioned in the previous paragraph, sheet No 1 must be made out in full, while insheet No 2 only the particulars relating to the name, address, title and signature of the declarant and
the date of completion of the form should be inserted.
3. The description of the goods under each item should be by product and should include the
tariff subheading and particulars of the type, class, variety, mark, model, year of manufacture,condition, commercial unit and invoiced value of the goods.
It is not necessary to enter the serial numbers used by manufacturers for the individual
identification of goods, except where vehicles are concerned, in which case the vehicle identification
number (VIN) must be noted.
Where the enterprises concerned are always engaged in the same activity, with imports
involving numerous references in the same import declaration, for the purpose of determining the
customs value similar goods may be grouped by product ranges and average prices, provided they are
from the same supplier, are classified in the same tariff subheading and the price difference betweenreferences does not exceed 25 percent.
4. Once the description of the goods, broken down by item, has been made out in full for the
first tariff subheading, the declarant may proceed to the corresponding description for the second
subheading, maintaining the order of the items on proceeding to the boxes intended for the trademark,
model, condition of the goods and other particulars required by Part II of the form.
5. If the space available for describing the goods is insufficient, as many additional sheets of the
Andean declaration of value form as required may be used, provided they are listed in box 1
"Additional Sheets".
6. In box 42 the unit price in dollars (US$) should be entered in f.o.b. terms.  If the price actually
paid or payable has been negotiated on different delivery terms, the estimates necessary to enter it in
f.o.b. terms must be made.
As many decimal places resulting from the previous calculation as needed to obtain the
greatest possible accuracy in relation to the total price declared for the transaction may be used.  In thecase of imports of goods not transported by sea, instead of f.o.b. terms, the unit amount invoiced in
free carrier (f.c.a.) terms may be entered in this box, without prejudice to the inclusion in the customs
value to be determined of all costs incurred in movi ng the goods from their place of origin to the place
of importation in Colombia.
This shall also apply to the completion of box 41 of the import declaration.G/VAL/N/1/COL/1
Page 11
7. Where the Customs Directorate has established official prices, sheet No 2 of the Andean
declaration of value must be made out with the actual data of the transaction and the boxes relating to
value in the import declaration should be completed as follows:
(a) if the invoiced price is equal to or greater than the official minimum price, the information
entered in sheet No 2 of Part V of the Andean declaration of value shall be transferred to the
corresponding boxes of the import declaration.
(b) if the invoiced price is lower than the offi cial minimum price, the difference between the
invoiced value and the official minimum price shall be entered in boxes 43 and 64 "Value
Adjustment US$" of the import declaration.
(c) if under Andean Decision 371 an official price, known as the "c.i.f. reference price", has been
fixed for the Andean Price Band System, that price shall constitute the basis of assessment for
the application of customs duties on the marker products.  Consequently, the difference
between the invoiced value and the official c.i.f. price shall be entered in boxes 43 and 64
"Value Adjustment US$" of the import declaration.  If the declared price is higher than theofficial c.i.f. price, the adjustment will be negative.
8. If the transaction value method is applied, then for each subheading the value entered in
box 79 "Declared Transaction Value" of the Andean declaration of value shall be transferred to boxes
44 and 65 of the import declaration "Customs Value in US Dollars".
9. The Andean declaration of value may be made out and signed by the importer of the goods or
by the Sociedad de Intermediacion Aduanera (customs broker), which in this case shall act on behalf
of and for the account of the importer.  If the importer is a corporate entity acting directly, the
declaration shall be signed by its legal representative.
In addition to the above, the instructions for making out the corresponding form and the
provisions of Andean Decision 379 shall be taken into account.
Article 160.  Responsibility of the importer and the customs broker
By signing the form, the declarant takes responsibility for the conformity of the data entered
in the Andean declaration of value with the supporting documents.
The importer shall always be directly responsible for the truth, accuracy and completeness of
the information provided for the determinati on of customs value and entered in the Andean
declaration of value, as well as for the accompanying documents necessary for the determination ofthe customs value of the goods.
The Sociedad de Intermediacion Aduanera shall be responsible in valuation disputes only if
prices lower than the official minimum prices are declared or if the prices declared are different from
those in the invoice supplied by the importer, after any necessary adjustment.
Article 161.  Obligation to make out a declaration
For each import declaration whose total f.o.b. value as contained in the invoice or contract is
equal to or greater than US$ 5,000 and in cases of split values or multiple or split consignmentswhich, taken together, equal or exceed that value, an Andean declaration of value form shall be made
out.G/VAL/N/1/COL/1
Page 12
Where the value contained in the invoice or contract is not expressed in f.o.b. terms, the
importer shall perform the operations necessary to adapt it to those terms, solely for the purpose of
determining whether there is an obligation to make out a declaration.
Article 162.  Split consignments, multiple consignments and split values
For the purposes of the third paragraph of Article 241 of Decree 2685 of 1999 the following
definitions are employed:
1. Split consignments : those corresponding to goods covered by different commercial invoices
which, while together forming the subject of a single transaction between a buyer and a seller, are not
presented in a single import operation for supply, transport, payment or other reasons and aretherefore despatched in part shipments, staggered or simultaneous, whether through the same customs
office or through different customs offices.
2. Multiple consignment : goods shipped to the same importer under different commercial
invoices issued by the same foreign supplier with different transport documents listed in the samecargo manifest.
3. Split value : the value is considered to have been split if the goods enter the country under
cover of the same transport document and are declared in different import declarations, with one or
more commercial invoices made out by the same supplier to the same consignee.
Article 163.  Simplified procedure for the Andean declaration of value
The application of the simplified procedure for the Andean declaration of value may be
requested if the goods comply with the requirements of Article 6 of Andean Decision 379, under theprocedure laid down in Articles 33 et seq. of this Resolution.
Article 164.  Provisional declaration
The circumstances in which the importer may declare a provisional customs value relate
solely:
1. To a sale at a revisable price for export to the country of importation; in this case the nature of
the transaction shall be indicated in the Andean declaration of value.
2. To the amount, estimated at the time of valuation, of royalties and licence fees or the part of
the profits or other proceeds of the resale, disposal or use of the imported goods that the importer mustpay his supplier as a condition of sale under an agreement with the latter.  In this case the fact that the
declared value is provisional shall be indicated in the corresponding box of the Andean declaration of
value.
3. To the non-application of the transaction value method as a result of the non-fulfilment of the
requirements laid down in Article 174 of this Resolution, in which case it will be necessary to proceed
in accordance with the provisions of Article 159.2 of this Resolution.
Article 165.  Procedure
If the value declared as the basis for assessment in the Andean declaration of value is
provisional, in order to obtain the release of the goods, in addition to paying the customs duties
corresponding to the value declared, the declarant must proceed as follows:G/VAL/N/1/COL/1
Page 13
1. In circumstances 1 and 2 of the preceding article, attach the contract of sale authenticating
those circumstances and provide security in the form prescribed in Article 526 of this Resolution.
If the importer knows the definitive value, and can prove it by means of accounting records
and other relevant evidence, he shall submit a correction declaration to that effect, paying theadditional customs duties applicable in order to obtain the discharge of the security. For this purpose,
he shall be granted a period of six (6) months from the date of presentation of the initial declaration.
If this period is not sufficient, it may be extended once only for a further period of not more than
six (6) months, upon application by the importer to the Foreign Trade Service Division made not less
than fifteen (15) days before the expiration of the initial period, provided the security is continued for
the duration of the extension period.
If the definitive value is less than the provisional value, the excess duties paid shall be
refunded in accordance with the provisions of Article 548 of Decree 2685 of 1999.
If the values declared as being estimates do not change during the period allowed for
submitting a correction declaration and become definitive, the importer shall so inform, in writing, theForeign Trade Service Division of the Customs Administration holding the security and attach the
authenticating contract document, in order to have the security discharged.
2. In circumstances 3 of the preceding article, in the event of a Customs inspection, the Foreign
Trade Service Division shall send a photocopy of the import declaration and the Andean declarationof value, together with the supporting documents , to the Customs Audit Division of the Customs
Administration of the importer's tax district, for the determination of the corresponding customs value.
If release was automatic, the declarant shall request the Customs Audit Division of the corresponding
jurisdiction to value the goods.
Once the customs value has been definitively established, the Customs Administration shall
inform the importer in order that within one month of the date of notification he may submit a
correction declaration and pay any additional customs duties.
In neither of these two cases shall a penalty be applied on account of any difference between
the provisional value declared and the definitive customs value determined.
Article 166.  Non-compliance
If the declarant does not produce the contract mentioned in paragraph 1 of the preceding
article, or fails to submit a correction declaration or does not submit it in good time, the security shall
be forfeited, without prejudice to the payment of any additional duties and the application of anypenalty under Article 499.6, 7 and 8 of Decree 2685 of 1999.
If no notice is given in respect of the situation specified in the last subparagraph of paragraph
1 of the preceding article, the Customs Administration shall order that the security lodged by the
importer be forfeited.
Article 167.  Retention of the Andean declaration of value
The Andean declaration of value, together with its supporting documents, shall be retained by
the declarant for a period of five (5) years, at the disposal of the customs authority.G/VAL/N/1/COL/1
Page 14
Article 168.  Correction declaration
In the Andean declaration of value, any of the elements constituting the definitive or
provisional customs value may be corrected before a special customs demand is issued or as a
consequence thereof, but in no case after an official value correction or revision assessment has beenmade.
When the import declaration or the Andean declaration of value, as a document in support
thereof, is corrected, any additional customs duties, interest and penalties must be paid, in which case
the new basis of assessment or customs value shall be calculated by applying the exchange-rate in
force on the date of presentation and acceptance of the initial declaration.  The import declaration and
the Andean declaration of value may also be corrected in order to rectify errors or omissions relatingto the completion of any of the boxes of the Andean declaration of value, provided this does not
involve the reduction of the basis of assessment, or if the declaration of an official price has been
omitted.
Article 169.  Amendment of the declaration
If the declaration is amended, the customs value of the goods shall be determined in
accordance with the procedure laid down in Chapte r III of Title III of this Resolution, taking into
account the condition of the goods at the time of valuation.  For this purpose, the rate of exchange
applicable shall be that in force on the date of presentation and acceptance of the amendment to thedeclaration.
The Andean declaration of value shall be presented together with the amendment to the
declaration, in accordance with the provisions of Article 161 of this Resolution.
CHAPTER II
VALUATION CONTROLS
Article 170.  Official prices
Official prices fixed by the Director of Customs shall be mandatory and used solely for the
purpose of collecting customs duties.  Therefore the basis of assessment of the goods for which theyhave been established shall be determined in accordance therewith.
As indicated in Article 159.7 of this Resolution, if the price actually paid or payable is
different from the official minimum price, then, for the purpose of determining the basis of
assessment, the higher of the two shall be declared.  In the case of an official price fixed under theAndean Price Band System, the official price shall be taken as the basis of assessment.
Consequently, values lower than the official minimum price and values different from the
official price fixed in c.i.f. terms under the An dean Price Band System may not be declared.
Article 171.  Reference prices
The reference prices defined in Article 237 of Decree 2685 of 1999 must be regarded as
indicative, for use as a control measure during a Customs inspection.  Thus, they will serve as a basis
in any dispute that may arise between the administration and the importer.  The price taken as areference price shall be used for assessing the amount of security to be lodged.
Nevertheless, in post-inspection controls, in applying the method of last resort, they may be
taken as the basis for the valuation of identical or similar goods, once the first five methods of theG/VAL/N/1/COL/1
Page 15
Agreement have been exhausted by applying them in strict order, in accordance with the provisions of
Article 247 of Decree 2685 of 1999, including with greater flexibility.
Article 172.  Disputes
During Customs inspection in the process of importation, a valuation dispute may arise in any
of the situations described below.  In each case the procedure laid down in the following paragraphs
shall be observed, taking into account the provisions of Article 128 of Decree 2685 of 1999 and
Article 9 of Andean Decision 378 of 1995:
1. If an Andean declaration of value is not presented or does not correspond to the goods
declared or to the import declaration, correction declaration, legalization declaration or amendeddeclaration concerned, or if the Andean declaration of value is not complete and correctly made out,
does not contain the declarant's particulars or has not been signed.
In this case, release will only be authorized if within five (5) days of the inspection the
declarant presents the corresponding Andean declaration of value duly made out and pays anypenalties.
2. If no documents are presented in support of any of the elements that make up the customs
value or if such documents are not valid, do not comply with the legal requirements, especially those
laid down in Articles 187 and 188 of this Resolution for the commercial invoice, or are smudged,have been corrected or show signs of tampering.
In this case, release will only be authorized if within five (5) days of the inspection the
declarant authenticates the supporting documents in due form and lodges security in accordance with
Article 527 of this Resolution, without prejudice to any penalty that may apply.
3. If the declared value is lower than the official price.  In this case, release will only be
authorized if within five (5) days of the cust oms inspection the declarant presents a correction
declaration and pays the higher duties resulting from the application of the official price and the
corresponding penalty.
4. If the dispute arises because the declared value is lower than the reference price, or the
inspector, on the basis of other objective and quantifiable data, has doubts about the value declared.
In this case, release will only be authorized if within five (5) days of the inspection the
declarant produces documents showing that the decl ared value constitutes the total amount actually
paid or payable with the corresponding adjustments or provides security as specified in Article 523 ofthis Resolution.
5. If the dispute arises because the price indicated in the invoice, or any of the other elements
that constitute customs value, is obviously too low.
In this case, release will only be authorized if within five (5) days of the inspection, the
declarant produces documents showing that the decl ared value constitutes the total amount actually
paid or payable with the corresponding adjustments or provides security as specified in Article 527 of
this Resolution.  The penalties resulting from any infringements shall be applied without prejudice to
the provisions of Article 521 of Decree 2685 of 1999.G/VAL/N/1/COL/1
Page 16
Article 173.  Post-inspection controls
If after the expiration of the periods indicated in the previous article the declarant has not
authenticated the documents in due form, has not made the necessary corrections and paid the
additional duties and any penalties, or has not produced documentary evidence, if the evidenceproduced does not resolve the dispute, or if security has not been lodged in the circumstances
specified in paragraphs 4 and 5 of the previous article, release of the goods shall not be authorized and
the import declaration and supporting documentation shall be sent, with the reasoned report of the
inspector, to the Customs Audit Division.  This of fice will continue the investigation and issue the
corresponding special customs demand, in accordance with Article 509 of Decree 2685 of 1999.
If once the special customs demand procedure has been initiated, the declarant does not
respond or his response is not deemed satisfactory, the procedure laid down in Article 512 of
Decree 2685 of 1999 shall be applied.
The above without prejudice to any criminal proceedings.
CHAPTER III
DETERMINATION OF CUSTOMS VALUE
SECTION I
VALUATION METHODS
Article 174.  Application of the transaction value method
The transaction value method is the first of the methods for which the Agreement provides
and takes precedence over the others in determining the customs value of imported goods, providedthat the circumstances prescribed in Articles 1 and 8 of the said Agreement are fulfilled, namely:
1. That the goods to be valued have been the subject of a transaction involving an effective
international transfer, that is to say, that there has been a sale immediately prior to export to
Colombia.
2. That a real price involving payment has been made, irrespective of the date of the transaction
and, consequently, without any subsequent price fluctuations being taken into account.
3. That there is prior documentary evidence of the price actually paid or payable, directly or
indirectly, to the seller of the imported goods; thus, payment need not take the form of an actual
transfer of money since it may be made by way of a letter of credit or other negotiable instrument.
4. That all the requirements of Article 1(a), (b), (c) and (d) of the Agreement are met.5. That, if necessary, the price paid or payable for the imported goods can be adjusted on the
basis of objective and quantifiable data, in accordance with the provisions of Article 8 of theAgreement.  It should be borne in mind that the customs value thus determined will not include the
items listed in Article 184 of this Resolution.
Article 175.  Sale for export to Colombia
The transaction value method can be applied if the goods being valued were sold for
immediate export and not for a different purpose, use abroad or sale to a third country and subsequent
export to Colombia.  The normal time required to ship the goods abroad and any temporary storage
shall not be taken to mean that this requirement has not been met.  Nor is the place or country inG/VAL/N/1/COL/1
Page 17
which the seller is located nor any successive sales of the goods prior to importation of any
importance, and in the latter circumstances the last sale before the goods are declared to customs shall
be considered.
Article 176.  Price paid or payable
The transaction value shall be determined on the basis of the price actually paid or payable,
that is to say, taking into account all the payments made, directly or indirectly, by the buyer to the
seller of the goods being valued, in accordance with the provisions of Article 1 of the Agreement, its
Interpretative Note and paragraph 7 of Annex III to the Agreement.
Payment shall be deemed to be direct if the to tal price in the commercial invoice is paid by
the buyer to the seller, and indirect if the buyer, assuming an obligation of the seller's, makes payment
for the goods to a third party, as a condition of sale imposed by the seller, in which case the
corresponding supporting documents must be available.
Article 177.  Discounts received
The fundamental basis of the transaction value is the actual payments made by the buyer to
the seller, so that discounts and rebates granted by the seller of the imported goods shall be accepted
for the determination of the customs value.  However,  to be acceptable, they must meet the following
requirements:
1. Not be retroactive discounts, that is to say, granted for goods imported prior to those to which
the rebate or discount is being applied.
2. The conditions on which the discount or rebate is based are satisfied, so that it can be shown
that the importer has benefited therefrom.
3. The amount of and reason for the rebate are indicated in the invoice separately from the price
actually paid or payable.
Discounts recorded in the contract document which have been taken into account by the
customs authority at importation shall be disallowed if subsequently, in the course of  post-inspection
controls, it is found that the conditions on which they were accepted have not been fulfilled, without
prejudice to any penalties which may be applied as a consequence of the resulting increase in the basis
of assessment.
If the goods purchased are sensitive to damage, natural wastage or deterioration, for example,
light bulbs, chickens weighing less than 185 g and other animals imported for industrial breeding,
cash discounts may be accepted to offset losses during transport, provided that the above requirements
are met and the invoice shows the number of extra units provided by the supplier to compensate for
damage, natural wastage or deterioration.
Article 178. Influence of relationship on the price paid or payable
A relationship, as understood in Article 15.4 of the Agreement, may influence the price
negotiated between the related parties.  The declarant is under an obligation to inform the customs,
through the Andean declaration of value, if such a relationship exists and if it has influenced the price.
If the price is not been influenced, the goods may be valued by applying the transaction value method.
Otherwise, it will be necessary to follow the procedure laid down in Article 159.2, second
subparagraph, and Article 165.2 of this Resolution.G/VAL/N/1/COL/1
Page 18
In accordance with Article 1.2 (a) of the Agreement, if in the course of post-inspection
controls it is determined that the relationship between the buyer and the seller has influenced the
price, the Customs Audit Division or the office acting  for it shall inform the declarant in writing of the
reasons why the transaction value is considered unacceptable.
Within fifteen (15) working days of the dispatch of this communication, the declarant may
show that the value has not been influenced by the relationship, if that is indeed the case, by
submitting any evidence he considers relevant, and in particular:
1. An analysis of the circumstances of the sale relating to particular conditions of the transaction
that determined the price and are equally valid in the absence of a relationship for independent buyers,
such as quotations obtain from other unrelated sellers, contracts of sale, seller's price lists, quantitiespurchased.
2. A demonstration that the value declared for the goods satisfies one of the test values
mentioned in the next article and is therefore acceptable for the purposes of Article 1 of the
Agreement.
If the period mentioned in this article has elapsed without the importer having responded or if
the explanations provided are insufficient to cons ider the transaction value acceptable, the customs
authority shall determine the customs value of th e imported goods in accordance with the subsequent
methods, in conformity with the Articles 247 and 248 of Decree 2685 of 1999.
In determining whether the relationship has influenced the price, the customs authority shall
base itself on provable facts, like those set out in Paragraph 2.3 of the Interpretative Note to Article 1
of the Agreement, as follows:
(a) whether the price has been settled by the seller in a manner consistent with the normal pricing
practices of the industry in question, or
(b) whether the price has been settled in a manner consistent with the way in which the seller
settles prices for sales to unrelated buyers, or
(c) whether, given the resale price in Colombia, the importing firm is able to recover all costs
plus a profit which is representative of its overall profit over the immediately preceding year
on sales of goods of the same class or kind.
Article 179.  Test values
In accordance with the definition in Article 237 of Decree 2685 of 1999 and Article 1.2 (b) of
the Agreement, a value shall be considered to be a test value only if it has been accepted by the
customs authority for identical or similar goods entered by other importers unrelated to the seller, in
conformity with Article 220 of this Resolution, and provided that:
1. The value of the identical or similar goods taken for comparison purposes has been
determined by the transaction value method and occurs at or about the time of exportation to
Colombia of the goods being valued.
2. The value of the identical or similar goods taken for comparison purposes has been
determined by applying the deductive method and occurs at or about the time of sale in Colombia of
the goods being valued.G/VAL/N/1/COL/1
Page 19
3. The value of the identical or similar goods taken for comparison purposes has been
determined by applying the computed value method and occurs at or about the time of importation of
the goods being valued.
Article 180.  Use of test values
For the application of the test values defined in Article 237 of Decree 2685 of 1999, the
following shall be taken into account:
Test values may only be used by importers related to the seller, solely for comparison
purposes, to obtain acceptance of the declared customs value, provided that such value closely
approximates to one of the values indicated in paragraphs 1, 2, and 3 of the preceding article.
In determining whether a declared value approximates to a test value, in each case the
following factors must be taken into considerati on: the nature of the imported goods, for example,
perishable, high-technology or novel products; the nature of the industry itself, for example, high-
technology, video games, toys or chemicals; the season in which the goods are imported, for example,seasonal fruit and vegetables or clothing; and whether the difference in values is commercially
significant, for example, a difference in price may not have the same significance in the case of cars
as it has in the case of perishable products.
Article 181.  Place of importation
In accordance with Article 5 of Andean Decision 378, for the application of the adjustments
specified in Article 8.2, in respect of additions, and the Interpretative Note to Article 1 of the
Agreement, in respect of deductions, the customs value shall be determined by considering the goods
as delivered to the place of importation in Colombia, which, in accordance with the definition inArticle 6 of the aforementioned Decision, is taken to mean the first customs office in the national
customs territory in which the goods are subjected to customs formalities.
Article 182.  Additions to the price paid or payable
If the price paid or payable does not include the elements listed in Article 8 of the Agreement,
it must be adjusted by taking into account the costs to which those elements relate, provided they havebeen incurred by the buyer.  In adjusting for the el ements taken into consideration in Article 8 of the
Agreement, it is necessary to consider the indicatio ns given in its Interpretative Note, especially the
way in which the elements specified in Article 8.1 (b) may be apportioned to the imported goods.
Royalties and licensing fees relating, for example, to the use of software, i.e., data or
instructions recorded on computer media for data processing equipment, to films or videos, sound
recordings, a foreign trademark, industrial, commer cial or scientific equipment, know-how, or a
patented formula, design, process or model, as well as to the use of copyright in an artistic, literary,
technological or scientific work, shall be added to the price paid or payable, if they relate to the goods
being valued, constitute a condition of sale for the export of the imported goods to Colombia and canbe identified on the basis of objective and quantifiable data.
The accruals to which Article 8.1 (d) of the Agreement refers may take the form of a
distribution of profits agreed between a buyer and a seller or a return of profits made on the resale of
the imported goods, with or without processing.  In no case should they be confused with dividendpayments, which are based on a company's overall profits.
The costs specified in Article 8.2 of the Agreement include the carriage, manipulation,
adaptation for export, handling and delivery of the goods to the port or place of shipment, the freightG/VAL/N/1/COL/1
Page 20
costs from the first place of shipment to the place of importation in Colombia and the cost of insuring
the goods for transport.
The freight value for adjustment purposes is that agreed between the parties in the transport
contract.  If the goods have made several journeys before arriving in the country, all these costs mustbe taken into account in determining the adjustment.
Similarly, the cost of purchasing or leasing containers, cylinders, tanks and the like, which
may be reusable, for transporting the goods forms part of the customs value.
Moreover, the value to be entered as the cost of insurance is that corresponding to the
premium actually paid for that purpose.  In acco rdance with Article 8.3 of the Agreement, in no
circumstances shall notional or estimated values be accepted.
Article 183.  Documentary evidence for additions
Transport costs, which may occasionally be agreed verbally, are documented by means of the
bill of lading or way-bill.  The value of the insurance paid in connection with the transport of the
goods can be found in the policy issued by the insurance company.  If the delivery of the goods to the
place of shipment and the transport, loading, unloading, handling and insuring of the goods for
delivery to the place of importation have not given rise to costs, are free of charge or carried out by
the importer's own means or services, in accordance with the second paragraph of Article 5 ofDecision 378, the tariffs normally applicable on this route and for these goods shall be used.
These tariffs may be documented by means of certificates duly issued by companies that
provide international transport or insurance services.  The certificate must show, in addition to the
trade description of the goods, the tariff payable and particulars of, among other things, the value,weight or volume to which the tariff is applied.
If the importer fails to show that the transport or insurance costs have been paid, fails to
produce a certificate confirming the tariffs or premiums normally applicable to the services referred to
in the preceding paragraphs or, in general, if any information concerning the adjustments or additions
made to the price paid or payable is not supported with objective and quantifiable data, the transaction
value shall be rejected and the value shall be de termined by the next method provided by the
Agreement.
Article 184.  Items not included in the customs value
The customs value shall not include the following costs and expenses:
1. Buying commissions.
2. Rights of reproduction of the imported goods in Colombia.
3. Rights of distribution or resale of the importe d goods, if they do not constitute a condition of
sale of the goods for export to Colombia.
4. Services provided by the buyer in Colombia for marketing the imported goods, such as
advertising, guarantees and assistance at trade fairs.
5. Demurrage costs for vessels in Colombian ports, unloading and handling costs at the place of
importation.
6. Post-importation construction, assembly, installation, erection, maintenance and technical
assistance relating to imported goods such as machinery or industrial equipment.
7. Customs duties or other taxes paid to import the goods in question.
8. Interest, provided that the requirements of Article 7 of Andean Decision 378 are met.G/VAL/N/1/COL/1
Page 21
9. Transport or carriage subsequent to the arrival of the goods at the place of importation in
Colombia.
10. Dividends and other payments unrelated to the imported goods.
The costs and expenses mentioned at 1, 5, 6, 7, 8 and 9 above may be deducted if they are
included in the price paid or payable and separately indicated in the commercial invoice.
Article 185.  Requirements for making deductions
Deductions may be made if the expenses it is proposed to deduct satisfy the following
requirements:
1. Such expenses are related to the imported goods.
2. The amounts are included in the price paid or payable for the imported goods.
3. The items are indicated separately from the price of the goods in the commercial invoice.
Article 186.  Deduction of buying commission
For a buying commission to be deductible from the price paid or payable, in addition to
satisfying the requirements of the preceding article, it must be fully recognizable through
identification of the following aspects, in acco rdance with Explanatory Note 2.1 and Commentary
17.1 of the Technical Committee on Customs Valuation:
1. There is no relationship of exclusivity between the buyer and his agent abroad.
2. The buying agent acts for the account of the buyer.
3. The buying agent is not the owner of the goods and consequently his activity does not involve
a resale.
4. The buying agent cannot fix the price of the goods.
5. The buying agent does not maintain stocks of goods.
6. The buying agent may undertake to find suppliers to suit the importer's needs, collect
samples, inspect goods and arrange the insurance, transport, storage and delivery, including
payment, of the goods, without the latter service making him their owner.
These characteristics make it possible to distinguish between a buying agent and export or
marketing companies that operate independently.
Article 187.  Commercial invoice
For customs valuation purposes, the commercial invoice is the supporting document that
provides the main evidence of the payments made or to be made directly by the buyer to the seller of
the imported goods and also gives details of the goods shipped, their prices and their shipping costs,
as agreed between the parties.  The commercial in voice may take the form of an electronic message
transmitted from one computer to another and transposed into the EDIFACT universal standard
language, for whose acceptance the requirements indicated in the next article, together with the otherrequirements of the laws and regulations, must be met.
Article 188.  Invoice requirements
The commercial invoice referred to in Article 121 (b) of Decree 2685 of 1999 must be an
original document issued by the seller or supplier of the goods and must not display any smudging,
corrections or signs of tampering.G/VAL/N/1/COL/1
Page 22
In accordance with the standard rules and practices relating to documentary credit contained
in Publication 500 of the International Chamber of Commerce, the commercial invoice to be
presented by the importer of goods shall contain at least the following:
1. Date of issue.
2. Name and address of seller.
3. Name of buyer.
4. Description of the goods.
5. Quantity and price payable for the goods forming the subject of the transaction.
6. Transaction currency.  For example, whether United States dollars, Italian lira or yen.
7. Terms of delivery of the goods, in accordan ce with INCOTERMS, the international trade
terms established by the International Chamber of Commerce.
Electronic invoices must also meet the requirement of certification of the electronic signature.If any one of these requirements is not met, the customs authority shall proceed in accordance
with the provisions of Article 172.2 of this Resolution.
Article 189.  Application of the “transaction value  of identical goods” and “transaction value of
similar goods” methods
In valuing goods by these methods, the provisions of Articles 2 and 3 of the Agreement, their
Interpretative Notes and the definitions given in Article 15 of the Agreement shall be taken into
account.
In applying these methods, the customs shall determine which other imported goods with
customs values established by the transaction value method previously accepted by the customsauthority in accordance with Article 220 of this Resolution and exported at or about the same time as
the goods being valued, in accordance with Article 237 of Decree 2685 of 1999, may be considered
identical or similar.
For this purpose, the customs officer responsible for valuing the goods shall consult the
Valuation Decisions Module of the Customs Computer System or, failing that, the relevant databases
maintained by the Customs Technical Division or the service acting for it.
Adjustments relating to commercial level and/or quantity that have to be made in respect of
the corresponding differences between the imported goods and the identical or similar goods
considered shall be based on price lists issued by the supplier of the goods.  These documents must
meet the requirements of the Code of Civil Procedure for evidence provided abroad.  Similarly,adjustments must be made to take into account any differences in respect of transport and insurance
costs between the imported goods and the identica l or similar goods considered resulting from
differences in the distance traveled and the mode of transport.
Article 190.  Application of the deductive method
In accordance with Article 5 of the Agreement and its Interpretative Note, the following
aspects shall be taken into account in determining the customs value using the deductive method:
1. The calculation shall be based on the unit price at which the goods being valued are sold in
Colombia in the greatest aggregate quantity.  If the goods are not being imported for sale or at
the time of determination of the customs value they have not been sold, the unit selling price
made by the same importer or other importers for goods identical or, failing that, similar to
the goods imported shall be used.G/VAL/N/1/COL/1
Page 23
2. Deductions from the unit selling price may be made for the following:
(a) commissions paid or agreed to be paid by the importer to third parties who sell the goods in
Colombia on his behalf;
(b) the additions usually made for profit and general expenses in connection with sales in
Colombia of the imported goods or other identical or similar goods;
(c) transport and insurance or other costs incurred by the importer after importation of the goods
into Colombia;
(d) the customs duties payable on the importation or sale of the goods.
3. Where the costs of commissions paid by the importer are deducted, there shall be no
deduction for profit and general expenses.
4. Under the above headings, only the parts that actually go to make up the resale price in
Colombia shall be deducted, except in the case of profit and general expenses.  If the figures
supplied by the importer do not agree with those customary in the trade for domestic sales ofthe imported goods, the tariffs normally applicable in the sector in question shall be deducted
and not those supplied by the importer.
5. If the selling price communicated by the importer includes anti-dumping or countervailing
duties, these shall be deducted.
6. Where the costs concerned must be incorporated in the customs value under Article 182 of
this Resolution and are included in the selling price of the goods, they shall not be deducted
even if incurred in the country.
For deductions to be made, it is imperative that the items to be deducted are supported by
documentary evidence, can be objectively identified and are consistent with ordinary commercial
usage and practice in the industry or sector concerned.
For it to be taken as a point of departure for deduction purposes, it is important that the unit
price at which the imported goods are sold on the domestic market be consistent with commercial
practice and not correspond to arbitrary or fictitious values.
Article 191.  Application of the computed value method
In accordance with Article 6 of the Agreement and its Interpretative Note, in applying this
method information available in Colombia shall be taken into consideration, without prejudice to anycooperation that may be provided by the seller of the goods and any verification that the Customs
Administration may undertake abroad.
In general, the computed value method will be limited to those cases in which the buyer and
seller are related due, among other things, to an undertaking given by the seller to the buyer to meetthe requirements for information in the country of importation.
Computed value consists of the sum of the following elements:
1. The cost or value of materials and fabrication or other processing employed in producing the
imported goods.G/VAL/N/1/COL/1
Page 24
2. An amount for the producer's profit and general expenses, provided they are those customary
in the country of exportation in the industry co ncerned.  Failing that, those customary in the
industry producing goods of the same class or kind shall be added.
3. Transport and insurance costs that must be paid to have the goods carried to the place of
importation in Colombia.
Article 192.  Application of the method of last resort
If the customs value cannot be determined by any of the first five methods mentioned in
Article 247 of Decree 2685 of 1999, it shall be determined by applying the method of last resort based
on Article 7 of the Agreement and its Interpretative Note, as follows:
1. Apply the methods a second time, starting with the transaction value of the imported goods
and continuing through to the computed value method, in strict order, but using reasonable
flexibility in assessing the requirements of each, until one is found that enables the customs
value to be determined.
2. Apply any reasonable means, provided they are consistent with the principles and provisions
of the Agreement and of Article VII of the GATT 1994, should it not have been possible to
value the goods, even using flexible criteria, by one of the first five methods, in accordance
with subparagraph 1.
The following are examples of flexibility in the application of subparagraph 1 above:
(a) In the transaction value method.
(1) The commercial value of bartered goods may be used to establish the price of the imported
goods, unless a price is stipulated in the contract, in which case that shall constitute the price
to be used.
(2) In the case of a lease with option to purchase, if the latter can be exercised at the beginning of
the contract, the price for the goods being valued indicated in the option may be used.
(b) In the transaction value of identical goods and transaction value of similar goods methods.
(1) The identical or similar goods need not have been exported at or about the same time as the
goods being valued.
(2) Available information on identical or similar goods produced in a country other than the
country of production or manufacture of the goods being valued may be used.
(3) Customs values determined by the customs authority for identical or similar goods may be
taken as a basis for valuation even if such determination was not made by applying thetransaction value method.
(c) In the deductive method.(1) The requirement in paragraph 1(a) of Article 5 of the Agreement could be flexibly interpreted
by considering the goods to be valued and identical or similar goods even if not sold in the
condition as imported.G/VAL/N/1/COL/1
Page 25
(2) The flexible application of this method could also be based on the domestic price at which the
imported goods or identical or similar goods are sold more than ninety (90) days after
importation.
The following, in particular, shall be reasonable means within the meaning of subparagraph 2
above:
use of the special procedures described in Section II of Chapter III of this Resolution;use of reference prices as a basis for valuation, as described in the second paragraph of
Article 171 of this Resolution;
In any event, in applying the method of last resort, information available in Colombia and, to
the extent possible, customs values previously determined, in accordance with Article 220 of this
Resolution, shall be used.
Article 193. Prohibitions
In applying the rules laid down in Article 7 of the Agreement, in no circumstances may
periods of time greater than one hundred and eighty (180) days be used for establishing the
approximate moment (“at or about the same time”).
Moreover, the customs value established by this method may not be based on any of the
following, as specified in Article 7.2 of the Agreement:
1. The selling price in Colombia of goods produced in Colombia.
2. A system which provides for the acceptance for customs purposes of the higher of two
alternative values.
3. The price of goods on the domestic market of the country of exportation.
4. The cost of production other than computed va lues which have been determined for identical
or similar goods in accordance with the provisions of Article 6 of the Agreement.
5. The price of the goods for export to a country other than Colombia.
6. Minimum customs values.
7. Arbitrary or fictitious values.
SECTION III
SPECIAL PROCEDURES
Article 194.  Special cases
As a development of the method of last resort provided for in Article 192 of this Resolution
and, in particular, in application of paragraph 2 of that Article, once the first five methods for which
the Agreement provides have been used, including the procedure under paragraph 1 of the
aforementioned Article, in the cases listed below special procedures may be applied.
In each case the procedure laid down shall take into account the relevant adjustments
specified in Articles 182 and 184 of this Resolution.
1. Used goods and antiques.
2. Obsolete goods.
3. Repaired, reconditioned or rebuilt goods.
4. Goods re-imported after outward processing.
5. Goods imported under a guarantee.G/VAL/N/1/COL/1
Page 26
6. Goods imported in replacement of other goods.
7. Auctioned goods.
8. Spoilt, damaged or deteriorated goods.
9. Goods imported under a leasing contract, with or without option to purchase.
10. Goods subject to legalization.11. Goods manufactured in industrial free zones.
12. Goods temporarily imported for re-exportation in the same state.
13. Imported goods of no commercial value.
14. Goods imported for non-commercial purposes.
15. Goods imported for processing or assembly.
16. Imported goods transported in bulk.
17. Software.18. Vehicles entering the country by their own means.
19. Goods subject to a change of procedure.
20. Goods that are difficult to value.
Article 195.  Used goods and antiques
In valuing used goods the following shall be taken into account:
1. If at the time of valuation the goods show signs of use and, according to the terms of the
invoice or contract of sale, were not purchased in that state, the following procedure must beapplied:
(a) use as the starting point the price of the goods as new in the year of manufacture.  The price
taken should be expressed in f.o.b. terms.  If the invoicing currency is other than United
States dollars, it must be converted to the latter in accordance with the second paragraph ofArticle 255 of Decree 2685 of 1999.
(b) apply to the price established under (a) a depreciation percentage based on the number of
years of use at the time of presentation of the import declaration.  The depreciation applied
may not exceed 70 per cent of the value of the goods as new in the year of manufacture.
The period of use shall be calculated from the time elapsed between the date of manufacture
of the goods and the date of presentation of the import declaration.
2. If the goods were purchased in the used state and a corresponding price was negotiated, the
transaction value method shall be applied if, in addition, all the requirements of Article 174 of
this Resolution are met.  Failing that, the subsequent methods shall be applied in the orderlaid down in Article 247 of Decree 2685 of 1999, with no depreciation.
Article 196.  Documentary evidence for depreciation purposes
The price of the goods as new in the year of manufacture may be substantiated by submitting,
in the order indicated, one of the following documents:
1. Resolution fixing an official price for the goods as new in the year of manufacture.2. Commercial invoice for the first sale.3. Certificate issued by the manufacturer or the distributor or seller abroad, stating the price of
the goods as new and their date of manufacture.  This certificate may be issued by theG/VAL/N/1/COL/1
Page 27
authorized dealer or representative of the make in Colombia, if it is not possible to obtain one
abroad.
4. Evidence of the reference price for the goods as new in the year of manufacture.
Article 197.  Goods subject to depreciation
Only the following goods may be the subject of depreciation:
1. Vehicles classifiable in Chapter 87 of the Customs Tariff.  Under the procedure laid down in
Article 195 of this Resolution, the price taken as the starting point must include the value of
optional accessories incorporated in the vehicle.  For each complete year of use twenty percent depreciation shall be deducted from the previous balance up to a maximum of seventy
per cent.  The calculation period shall extend from the date of manufacture of the vehicle to
the date of presentation of the import declaration.
The current price may be obtained directly by multiplying the base value by the relevant
depreciation coefficient, in accordance with the period of use or age, using the following table
of depreciation coefficients:
One (1) year------------------ -----------------------------------0. 8 0000
Two (2) years---------------- -----------------------------------0. 6 4000
Three (3) years--------------- ---------------------------------- 0 . 51200
 Four (4) years--------------- -----------------------------------0. 4 0960
 Five (5) years---------------- ---------------------------------- 0 . 32768
 Six (6) years or more------- -----------------------------------0. 3 0000
The current price thus obtained shall be used to calculate the basis of assessment.
For a reduction for depreciation to be accepted, the importer must produce the documentary
evidence specified in Article 196 of this Resolution.
2. Vehicles classifiable in Chapter 86 and machinery and equipment classifiable in
Chapters 84 and 85 of the Customs Tariff.
For each complete year of use of the vehicle, machinery or equipment, ten per cent of
depreciation on the previous balance shall be deducted, up to a maximum of seventy per cent.
The current price may also be obtained directly  by multiplying the base value by the relevant
depreciation coefficient, in accordance with the period of use or age, using the following
table:G/VAL/N/1/COL/1
Page 28
One (1) year ----------------- ---------------------------------------------0. 9 0000
Two (2) years --------------- ---------------------------------------------0. 8 1000
Three (3) years -------------- ---------------------------------------------0. 7 2900
Four (4) years-------------------------------------------------------------0. 6 5610
Five (5) years---------------- ----------------------------------------------0. 5 9049
Six (6) years --------------------------------------------------------------0. 5 3144
Seven (7) years-------------- ----------------------------------------------0. 4 7830
Eight (8) years--------------- ----------------------------------------------0. 4 3047
Nine (9) years---------------- ----------------------------------------------0. 3 8742
Ten (10) years -------------------------------------------------------------0. 3 4868
Eleven (11) years------------ ----------------------------------------------0. 3 1381
Twelve (12) years or more-----------------------------------------------0. 3 0000
The current price thus obtained shall be used to calculate the basis of assessment.
For the reduction for depreciation to be accepted, the importer must produce the documentary
evidence specified in Article 196 of this Resolution.
Article 198.  Goods that cannot be depreciated
In view of their special characteristics, used aircraft and ships, antiquities, period or
collector's items, engines, parts and accessories imported separately shall be valued in accordance
with the methods laid down in Article 247 of Decree 2685 of 1999.
That is to say, if the goods have been the subject of the sale for export to Colombia and
satisfy the other requirements of Article 174 of this Resolution, they shall be valued in accordancewith their transaction value, on the basis of the pric e actually paid or payable, adjusted in accordance
with Articles 182 and 184 of this Resolution.
If it is not possible to apply the transaction value method, recourse shall be had, in turn, to the
subsequent methods until one is found that enables the customs value to be determined.  In applying
the method of last resort it may be found useful to consult specialized periodicals listing the prices of
some of these used products, according to make, type, characteristics and year of manufacture,without allowing reductions for use or age, or, wh ere appropriate, an expert opinion may be obtained.
Article 199.  Obsolete goods
In valuing obsolete goods the following shall be taken into account:
1. If at the time of valuation, because of changes in model, style or technology, among other
things, the goods are out of date and according to the commercial invoice or contract of sale
were not purchased in that state, the following procedure shall be applied:
(a) take as the starting point the price of the goods in the year of purchase, expressed in f.o.b.
terms, as indicated in the commercial invoice, without prejudice to the provisions of Article
172 of this Resolution.  If the invoicing currency is other than United States dollars, it shall be
converted to the latter in accordance with the second paragraph of Article 255 of
Decree 2685 of 1999.
(b) apply to the price thus established a 10 percent reduction for depreciation, for each calendar
year that has elapsed between the date of purchase, according to the commercial invoice orG/VAL/N/1/COL/1
Page 29
contract of sale, and the date of presentation of the import declaration.  The reduction for
depreciation may not exceed 70 per cent of the value of the goods at the time of purchase.
If at the time of valuation a complete year has not elapsed, the depreciation shall be
proportional to the time that has elapsed between the date of purchase and the date ofpresentation of the import declaration.  If necessary, an expert opinion may be obtained, at the
importer's expense.
2. If the goods were purchased in a state of obsolescence and the price agreed corresponds to the
goods in that state, apply the transaction value method if, in addition, all the requirements of
Article 174 of this Resolution are met.  Failing that, the subsequent methods shall be applied
in the order laid down in Article 247 of Decree 2685 of 1999, without any reduction fordepreciation.
In view of their special characteristics, reductions for obsolescence shall not be applied to
used aircraft and ships, antiquities, period or collector's items, or engines, parts and
accessories imported separately, which shall be valued in accordance with the provisions ofArticle 198 of this Resolution.
Article 200.  Repaired, reconditioned or rebuilt goods
If at the time of valuation the goods are presented in repaired, reconditioned or rebuilt form,
the following procedure shall be applied:
1. According to the commercial invo ice or contract of sale, the goods were not purchased in this
state.
(a) Add to the agreed value of the goods, according to the commercial invoice, the cost of repair,
reconditioning or rebuilding, without prejud ice to the provisions of Article 172 of this
Resolution.
The value added for repair, reconditioning or  rebuilding shall include the value of the
materials incorporated, the labour and the profit of whoever did the work abroad or in a free
zone and the transport and insurance costs for foreign carriage.  Documentary evidence shallbe provided in support of all these items.
(b) If the goods were imported some time after the modifications were made, apply to the value
acquired by the goods after repair, reconditioning or rebuilding, the relevant percentages for
depreciation or loss of value, according to the years of use or obsolescence that have elapsedbetween the modifications being made and the time of presentation of the import declaration,
in accordance with the terms of Articles 197 and 199 of this Resolution.
The value of the goods, the value added and the dates of purchase and modification of the
goods shall be substantiated with authenticating invoices, without prejudice to the provisionsof Article 172 of this Resolution.
2. The goods were purchased in repaired, reconditioned or rebuilt form and the price agreed
corresponds to that state.
Apply the transaction value method if, in addition, all the requirements of Article 174 of this
Resolution are met.  Failing that, the subsequent methods shall be applied in the order laid
down in Article 247 of Decree 2685 of 1999.G/VAL/N/1/COL/1
Page 30
Article 201.  Goods re-imported after outward processing
The customs value of goods temporarily exported for re-importation after manufacturing,
repair, processing, reconditioning or rebuilding abroad or in an industrial free zone for goods and
services shall be determined as follows:
1. Repair, processing, reconditioning or rebuilding.
The customs value shall be constituted by the value added abroad and the transport and
insurance costs involved in the shipment and return of the goods.  The value added abroad shall
include, among other things, the price paid or payable for repairing, processing, reconditioning or
rebuilding the goods, including the value of materials and labour and the profit of whoever did thework abroad.
2. Manufacturing.
If the importer supplied goods and/or services for the manufacturing of the end product
imported, the customs value shall be determined by applying the transaction value method, taking into
account the provisions of Article 174 of this Resolution, especially as regards the goods and services
mentioned in Article 8.1 (b) of the Agreement.
The value of the goods and of the goods and services supplied, the value added and the date
of modification of the goods shall be substantiated with authenticating invoices, without prejudice to
the provisions of Article 172 of this Resolution.
Article 202.  Goods imported under a guarantee
Irrespective of whether or not customs duties are payable, the customs value of imported
goods that have been repaired abroad under a manufacturer's or supplier's guarantee shall be
constituted by the value added abroad and the tran sport and insurance costs involved in the shipment
and return of the goods.
The value added abroad shall include the price paid or payable for the repair of the goods,
including the value of materials and labour and the profit of whoever did the work abroad.
The value of the goods, the value added and the date of a repair shall be substantiated with
authenticating invoices, without prejudice to the provisions of Article 172 of this Resolution.
Article 203.  Goods imported in replacement of other goods
Irrespective of whether or not customs duties are payable, if the imported goods are intended
to replace other goods previously exported that were found to be damaged, defective, unsuitable for
the purpose for which they were imported or, in genera l, did not comply with the specifications of the
contract of sale, the customs value shall be determined as follows:
1. Goods imported in replacement of other goods that have been reshipped.
In this case, if the goods initially imported were not placed under any import procedure and,
consequently, did not pay customs duties, the customs value of the replacement goods shall bedetermined by considering the price invoiced in the initial transaction for the reshipped goods plus the
transport and insurance costs involved in the carriage of the reshipped goods and the goods imported
to replace them.G/VAL/N/1/COL/1
Page 31
This procedure shall only be followed if the replacement goods are invoiced at the initial price
or as being free of charge.
2. Goods imported in replacement of other goods exported after having been declared to
customs.
In this case, as duty has already been paid, it is necessary to consider the following:
(a) the goods are invoiced as being free of charge.  Whether or not customs duties are payable,
the customs value shall be determined by considering the value invoiced for the goods
initially imported plus the transport and insurance costs involved in the carriage of the
exported goods and those imported to replace them.
(b) the goods are invoiced at a reduced price.  The customs value shall be determined on the basis
of the value initially invoiced for the exported goods plus the price invoiced for the goods
sent to replace them and the transport and insu rance costs involved in the carriage of the
goods exported and those imported to replace them.
(c) the goods are invoiced at the initial price, separate arrangements having been made
concerning the appropriate payment for the goods initially shipped.  Whether or not customs
duties are payable, the customs value shall be determined by considering the invoiced price as
the basis for applying the transaction value method, if all the requirements of Article 174 ofthis Resolution are met, or the first of the other methods specified in the Agreement which,
when they are taken in turn, enables the customs value to be determined.
Article 204.  Auctioned goods
The customs value of foreign goods purchased at auction, inside or outside the country, shall
be obtained on the basis of the price paid at auction.  To the auction price there shall be added the
transport and insurance costs involved in the carriage of the goods to the place of importation, where
applicable.
Article 205.  Spoilt, damaged or deteriorated goods
If at the time of valuation the goods are found to be spoilt, damaged or deteriorated, their state
shall be taken into account in determining the custom s value.  The spoilage, damage or deterioration
may also be assessed during the examination of the goods, in accordance with the provisions of
Article 1 of Decree 2685 of 1999; in this case the ci rcumstances shall be recorded in the examination
report or equivalent document.
Accordingly, when a customs inspection is carried out, any spoilage, damage or deterioration
shall be assessed and noted in the corresponding report.
Without prejudice to any depreciation for use, age or obsolescence, in accordance with
Articles 197 and 199 of this Resolution, the customs value shall be determined by considering the
price paid or payable, as stated in the commercial invoice, reduced in proportion to the spoilage,
damage or deterioration, as follows:
1. Partial spoilage, damage or deterioration.
The basis for valuation shall be the initially agreed price actually paid or payable,  reduced in
proportion to the spoilage, damage or deterioration, which may be established in one of the following
ways:G/VAL/N/1/COL/1
Page 32
(a) an estimate made by an expert independent of the buyer and the seller;
(b) the cost of repairs or restoration as estimated by a person skilled in such work;
(c) the compensation paid by the insurance company, if any.
2. Total and irreparable spoilage, damage or deterioration.
The value placed on the waste or scrap by an expert independent of the buyer and the seller
shall be taken into consideration.  If the goods have  been sold at auction, the customs value of the
goods shall be the auction sale price.  Any costs involved in showing spoilage, damage ordeterioration shall be borne by the importer of the goods.
Article 206.  Goods imported under a leasing cont ract with or without option to purchase
Where goods are imported under a leasing contract, even with an option to purchase, the
transaction value method may not be applied, since leasing operations, by their very nature, do not
constitute a sale, as confirmed by Advisory Opinion 1.1 of the Technical Committee on Customs
Valuation.  It is therefore necessary to apply sec ondary methods, in the order of priority laid down in
Article 247 of 10 decree 2685 of 1999, until one that enables the customs value to be determined is
found.
If it should not prove possible to determine the customs value by applying the methods laid
down in the Articles 2 through 6 of the Agreement,  the method of last resort shall be employed by
first applying the methods laid down in Articles 1 through 6, inclusive, of the Agreement with
reasonable flexibility.
If, even with flexibility, it is not possible to determine the customs value, the following
reasonable criteria shall be used:
1. Take the reference prices in force for new or used goods for export to Colombia.  In the case
of used goods, the value may be determined in accordance with the current list prices for new
goods, if current list prices for used goods are not available.  Considering that the goods mustbe valued according to the state they are in at the time of valuation, it will be necessary to
adjust these list prices for new goods to take into account the depreciation and obsolescence
of the goods being valued.
2. Consider the terms of the leasing contract:(a) Leasing contract without option to purchase.
Valuation may be based on the rent paid or payable for the imported goods, in accordance
with the following procedure:
(1) calculate the current value of the goods at the time of presentation of the temporary import
declaration on the basis of the sum of the rental charges specified in the leasing contract, over
the useful life of the goods, by applying one of the following formulas:
Rental instalments paid in advance:G/VAL/N/1/COL/1
Page 33
t
A[(1+r) -1]
Vc = ---------------------
t-1
r(1+r)
Rental instalments paid in arrears:
t
A[(1+r) -1]
Vc = --------------------
t
        r(1+r)
where:
Vc is the current value to be determined
A is the rental instalment (annual, half-y early, quarterly, monthly, bimonthly, as
appropriate)
r is the interest rate stipulated in the contract or, failing that, the Libor rate
(annual, half-yearly, quarterly, according to the period covered by A).
t is the probable life of the goods which may be expressed in years or fractions
of a year, depending on the payment of A and r.
If the useful life of the imported goods is not known, the life of identical or similar goods may
be used, or specialized enterprises may be consulted, in collaboration with the importer. It is
necessary to distinguish between the useful lives of new and used goods, for example, by using the
expression "total useful life" for the former and "residual useful life" for the latter.
(2) Determine the customs value on the basis of the value obtained by making the additions or
deductions referred to in Articles 182 and 184 of this Resolution, in accordance with the
terms of the contract and the basic principles of the Agreement. The items deductible include,
among others:
• Cost of maintaining and repairing the goods.
• Operating costs borne by the importer.
• Importer's normal profit.
• Post-importation transport costs and, in general, all those necessary to place the goods
at the disposal of the user.
• Import duties, taxes and levies.
(b) Leasing contract with option to purchase.(1) The option may be exercised at the beginning of the contract.
Valuation should be based on the option price, without prejudice to the provisions of Article
172 of this Resolution.G/VAL/N/1/COL/1
Page 34
(2) The option may be exercised during the contract.
Valuation may be based on the sum of the rental payments specified in the contract by
applying the procedure described at 2(a) abov e and adding the residual amount required to the
final value obtained.
(3) The option may be exercised at the end of the contract period.
Valuation may be based on the sum of the rental payments specified in the contract by
applying the procedure described at 2(a) abov e and adding the residual amount required to the
final value obtained.
Article 207. Goods subject to legalization
In accordance with Article 228 of Decree 2685 of 1999, if goods imported and presented to
customs are in one of the situations specified therein, a legalization declaration may be submitted withpayment of the customs duties and taxes and the corresponding redemption value.  For these purposes,
the basis of assessment shall be determined as follows:
1. Goods in respect of which documents in support of the transaction are not presented to
customs.
(a) if the goods constitute a surplus with respec t to other identical or similar goods that are
covered by the supporting documents, the transaction value method shall be flexibly applied,
taking as a basis for valuation the declared price, according to the commercial invoice, for the
goods covered by the documents.
(b) if the goods to be legalized do not constitute a surplus with respect to the covered goods and
no commercial invoice, transport document or document confirming the cost of insurance is
presented, the deductive method shall be applied with flexibility on the basis of the
commercial value of identical or similar foreign goods on the domestic market at the time of
presentation of the legalization declaration.  Where appropriate, elements that do not form
part of the customs value, such as the customs duties and taxes corresponding to the identicalor similar goods taken into consideration and the profit included in their commercial value,
shall be deducted from the commercial value.
2. Goods in respect of which documents in support of the transaction are presented to customs.
The transaction value method shall be applied if the requirements of Article 174 of this
Resolution are met.  If that is not possible, the subsequent valuation methods shall be applied in the
order indicated in Article 247 of Decree 2685 of 1999.
If at the time of valuation the goods are used, damaged, deteriorated or obsolescent,
corresponding deductions shall be made in accordance with the procedure established for each
particular case in this Resolution.
If the goods subject to legalization have a fixed official minimum price, then those prices
shall be taken as the basis of assessment, without prejudice to the possibility of including the cost offreight and insurance and other costs relating to the sale and delivery of the goods to the place of
importation, if the amount of these items can be established for the time of importation.G/VAL/N/1/COL/1
Page 35
Article 208.  Goods manufactured in industrial free zones
In accordance with Article 400 of Decree 2685 of 1999, the customs value of goods produced,
manufactured, processed or stored in industrial free zones for goods and services and imported into
the rest of the national customs territory shall be established as follows:
1. Goods manufactured or processed in a free zone.
The valuation methods shall be applied in the order indicated in Article 247 of Decree 2685
of 1999.  If the requirements laid down by the Agreement and indicated in Article 174 of this
Resolution are met, the transaction value method may be used, starting from the price actually paid or
payable by the buyer to the seller, in this case the user of the free zone.
In these circumstances, taking into account the provisions of Article 242 of Decree 2685 of
1999, only the value of the foreign raw materials and inputs incorporated or consumed in the
manufacture of the end product shall be taken into consideration.  The domestic value added shall be
treated as a deduction from the agreed price paid or payable, as specified in the commercial invoice.
2. Goods of foreign origin stored in free zones.
The valuation methods shall be applied in the sequence specified in Article 247 of Decree
2685 of 1999, with account for the provisions of Article 174 of this Resolution and the state of thegoods at the time of valuation.
Article 209.  Goods temporarily imported for re-exportation in the same state
For the assessment of the customs duties payable, the customs value shall be determined by
taking into account the provisions of Articles 144 and 145 of Decree 2685 of 1999.  If the
requirements laid down by the Agreement and indicated in Article 174 of this Resolution, especially
those mentioned in paragraphs 1, 2 and 3, are not met, the transaction value method may not be
applied.  Consequently, it will be necessary to have recourse to the subsequent valuation methods, as
provided for in Article 247 of the above-mentioned Decree.  If the method of last resort has to be
applied, then reference prices as defined in Article 1 of that Decree may be used, in accordance with
the second paragraph of Article 171 of this Resolution.  Where leased goods are concerned, theprocedure to be followed shall be that described in Article 206 of this Resolution.
Article 210.  Imported goods of no commercial value
All imported goods have customs value.  If the goods are of no commercial value, the
transaction value method cannot be applied, since the requirements laid down by the Agreement for
its application are not met.  Consequently, for determining the basis of assessment the subsequent
methods indicated in Article 247 of Decree 2685 of 1999 shall be applied.  If it is necessary to apply
the method of last resort, reference prices established in accordance with Article 237 of that Decree
may be used.
Article 211.  Goods imported for non-commercial purposes
For the valuation of goods imported for non-commercial purposes, such as, among others,
luggage, household effects and goods on loan, the customs value shall be constituted by the invoiceprice, if available, after deduction of the internal taxes of the country of exportation included therein,
provided they are indicated separately from the price of the goods, and addition of the corresponding
transport and insurance costs.G/VAL/N/1/COL/1
Page 36
In the case of accompanied luggage, the basis of assessment shall be the invoice value,
without prejudice to the provisions of Article 176 of Decree 2685 of 1999.
If necessary, reference prices established in accordance with Article 237 of the same Decree
and in pursuance of the second paragraph of Article 171 of this Resolution may be used.
Article 212.  Goods imported for processing or assembly
In accordance with Articles 191 and 243 of Decree 2685 of 1999, when the import declaration
for the unit produced is presented, the corresponding basis of assessment shall be determined by
applying reasonable means under the method of last resort, once the secondary methods specified in
Article 247 of that Decree have been exhausted.  In this case, the price paid or payable for the foreignparts and accessories used in its production, as indicated in the commercial invoice(s) issued by the
foreign supplier, shall be taken into consideration, without account for the domestic value added.
Article 213.  Imported goods transported in bulk
This type of transport may give grounds for a variation of the declared basis of assessment if,
when the goods are entered, differences in quantity, whether surpluses or shortages, as compared with
the agreed total quantity indicated in the trade documents, commercial invoice or contract of sale, arenoted.
If the difference is due to substantiated atmospheric, physical or chemical effects, such as
losses during transport, evaporation, humidity and the like, in accordance with Article 100 of Decree
2685 of 1999, a maximum variation of 5  per cent in the quantity or weight of the goods shall be
accepted. Consequently, the customs value shall be determined on the basis of the quantity of goods
actually imported by applying the unit price indicated  in the commercial invoice or contract of sale,
without prejudice to the provisions of  Article 172 of this Resolution.
Article 214.  Software
In valuing data and instructions (software) recorded on computer media for data processing
equipment, only the cost or value of the computer medium proper shall be taken into consideration,
provided that the latter is indicated separately from the cost or value of the data or instructions in the
commercial invoice.
Article 215.  Vehicles entering the country by their own means
In the case of vehicles entering the country by their own means, when it is not possible to
obtain data on the freight tariffs normally applicable, for the purpose of determining the customs
value the transport costs may be calculated on the basis of the cost of the fuel consumed during the
journey from the place of delivery abroad to the place of importation into Colombia.
 The unit price of the fuel shall be that fixed by Resolution of the Ministry of Mines and
Energy in force at the time of presentation and acceptance of the import declaration.
Article 216.  Goods subject to a change of procedure
Taking into account the provisions of Article 169 of this Resolution, when the import
declaration is amended, the customs value shall be determined in accordance with the state of the
goods at the time of valuation.  In this case the procedure shall be as follows:G/VAL/N/1/COL/1
Page 37
1. Goods imported duty-free or exempt from cu stoms duties which may subsequently give rise
to the payment of duty.
If goods imported duty-free or exempt from customs duties are to be left in free circulation
with the result that the procedure is terminated, th e basis of assessment shall be determined from the
value entered in the commercial invoice issued by the seller abroad, with application of the
appropriate reductions for obsolescence, spoilage, damage or deterioration or years of use between the
invoice date and time of presentation and acceptance of the amended import declaration, as prescribed
in Articles 197, 199 and 205 of this Resolution.
For these purposes, the provisions of Article 137 of Decree 2685 of 1999 shall be taken into
account.
2. Goods temporarily imported for a short period and then declared under the ordinary import
procedure.
If the goods are purchased with a view to thei r remaining permanently in the country, as the
sale is not for export to Colombia, the transaction value method may not be used for valuation
purposes; consequently, it will be necessary to use the subsequent methods in the prescribed order.  In
the method of last resort, the transaction value shall be applied flexibly, on the basis of the purchase
price, without applying depreciation percentages.
If the goods are not the subject of a sale, then, taking into account the document showing the
price of the goods in the state they were in at the time of initial importation, reasonable means shall be
applied in accordance with the provisions of Article 7 of the Agreement.  From this price there shall
be deducted percentages for obsolescence, spoilage, damage or deterioration, in accordance with thestate of the goods at the time of valuation.  The procedure laid down in Articles 199 and 205 of this
Resolution shall be followed.
The provisions of Article 150 of Decree 2685 of 1999 shall be taken into account.
3. Goods temporarily imported for a long period and then declared under the ordinary import
procedure.
In this case, the customs value shall be that  initially entered in the temporary importation
declaration, in accordance with the provisions of Article 150 of Decree 2685 of 1999, which provides
for amendment solely in respect of the import pro cedure, with payment of the corresponding customs
duties.
4. Goods temporarily imported for inward processing and then declared under the ordinary
import procedure.
If customs duties are payable, the basis of assessment shall be determined in accordance with
the state of the goods at the time of valuation.
If the goods are purchased with a view to thei r remaining permanently in the country, as the
sale is not for export to Colombia, the transaction value method may not be used for valuation
purposes; consequently, it will be necessary to use the subsequent methods in the prescribed order.  Inthe method of last resort, the transaction value shall be applied flexibly, on the basis of the purchase
price, without applying depreciation percentages.G/VAL/N/1/COL/1
Page 38
If the goods are not the subject of a sale, then, taking into account the document showing the
price of the goods in the state they were in at the time of initial importation, reasonable means shall be
applied in accordance with the provisions of Article 7 of the Agreement.  From this price there shall
be deducted percentages for obsolescence, spoilage, damage or deterioration, in accordance with the
state of the goods at the time of valuation.  The procedure laid down in Articles 199 and 205 of thisResolution shall be followed.
5. Postal traffic and urgent consignments.
In accordance with the provisions of Article 197 of Decree 2685 of 1999, if such goods are
declared under the ordinary import procedure, the basis of assessment shall be determined by treating
the total value entered in the commercial invoice as the customs value, if the seller and the sender are
the same person.  Otherwise, if the sender is different from the seller, the customs value shall be
determined by applying the methods from "transaction value" to "last resort", in strict order, until one
that enables the customs value to be determined is reached.
6. Goods imported under a leasing contract, with or without option to purchase.
In this case, the customs value shall be that  initially entered in the temporary importation
declaration for leased goods, since the customs value was previously determined for the assessment
and payment of customs duties at the time of presentation of the initial declaration and in accordance
with the provisions of Article 150 of Decree 2685 of 1999, which provides for amendment only inrespect of the import procedure, with payment of the corresponding customs duties.
Article 217.  Goods difficult to value
When goods in the making of which inventiveness or creativity predominated, such as works
of art, antiquities or collector's items, are valued, they shall be appraised in their entirety by applying
the methods provided in the Agreement and set out in Article 247 of Decree 2685 of 1999.  If
necessary, in applying the method of last resort, recourse may be had to the opinion of an approved
expert.
CHAPTER IV
OTHER PROVISIONS
Article 218.  Time of importation
In accordance with the provisions of Article 237 of Decree 2685 of 1999, the time of
importation is the time of arrival of the goods in the National customs territory, that is to say the timeof physical receipt of the cargo manifest by the customs authority in the port, airport or place of
arrival.
Article 219.  Special customs demand
If it is necessary to make an official value correction or revision assessment or impose some
penalty because the declarant or the importer has committed an administrative offence relating to
customs valuation, in accordance with the provisions of Article 499 of Decree 2685 of 1999, the
Customs Audit Division shall issue a special custom s demand, as laid down in Article 509 of the said
Decree, without prejudice to any penalties or the reduction specified in Article 521 of that Decree.G/VAL/N/1/COL/1
Page 39
Article 220.  Customs values accepted by the customs authority
For the purposes of Articles 179, 189 and 192 of this Resolution the only customs values
accepted by the customs authority shall be those whose consistency with the valuation regulations has
been verified by a technical study carried out by the Audit Division of the appropriate CustomsAdministration. Likewise, if, by Resolution of the Director of Customs, a fixed percentage value
adjustment has been established, in accordance with the provisions of Article 257 of Decree 2685
of 1999.
Accepted customs values shall be incorporated in the Valuation Decisions Module of the
Customs Computer System or, failing that, in the corresponding databases maintained by the Customs
Technique Division or equivalent offi ce in the Customs Administrations.
Article 221.  Related sales
As specified in Article 237 of Decree 2685 of 1999, if in related sales some condition relating
to price has been agreed, the price of the transaction shall depend on the terms of other transactionsagreed between the seller and the buyer.
If the condition agreed relates to the sale of the goods, it will be a question of transactions in
which the sale is closely linked with sales from the country of importation or from other countries and
reference will be made to so-called compensation deals, which essentially implies an exchange of
products for products or services for products.
Article 222.  Time of valuation
For the purpose of determining the customs value of imported goods, the time of valuation
shall be taken to be the time of physical inspection prior to release or, failing that, the time of
presentation of the import declaration.
Article 223.  WTO Valuation Agreement
For the purpose of applying the customs valu ation provisions, the WTO Valuation Agreement
shall be understood as meaning the GATT 1994 Valuation Agreement.
Article 224.  Binding nature of the instruments of the Technical Committee on Customs
Valuation and the Committee on Customs Valuation
The Advisory Opinions, Commentaries, Explanat ory Notes, Case Studies and Studies of the
Technical Committee on Customs Valuation of the WCO, the Decisions of the Committee on
Customs Valuation and other instruments issued by international organizations that regulate customs
valuation shall form an integral part of these regulations.
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