G/VAL/N/2/COL/3  
5 May 2021 
(21-3839) Page: 1/8 
Committee on Customs Valuation  Original:  Spanish  
 
  
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION  
OF THE AGREEMENT ON CUSTOMS VALUATION  
CHECK -LIST OF ISSUES  
COLOMBIA  
The following communication, dated 19 April 2021, is being circulated at the request of the 
delegation  of Colombia.  
 
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1. Questions concerning Article  1: 
(a) Sales between related persons:  
(i) Are sales between related persons subject to special provisions?  
Since Colombia is a member of the Andean Community, it applies the regulatory 
provisions in Articles  14, 15, and 16 of the Community Regulation implementing Andean 
Decision No. 571 on Customs Valuation of Imported Goods . This Regulation was 
adopted pursuant to Andean Community General Secretariat Resolution No. 1684 of 
23 May 2014. 
(ii) Is the fact of intercompany prices prima  facie  considered as grounds for 
regarding the respective prices as being influenced?  
In this case , Colombia applies the provi sions of Article 17 of the Community Regulation 
adopted by Andean Resolution No. 1684 of 2014, which states:  
"Article 17 : Transfer prices  
When transfer prices have been agreed, the importer either spontaneously or at the 
request of the Customs Administration, shall prove that such prices correspond to the 
price actually paid or payable ; in particular that the relationship existing did not 
influence the price and that the other requirements in Article  5 of these regulations are 
met; if this is no t the case, application of the transaction value method shall be 
rejected."  
(iii) What is the provision for giving the communicat ion of the afore mentioned 
grounds in writing if the importer so requests ? (Article  1.2(a))  
Article  15 of the Community Regulation adopt ed by Andean Resolution  No. 1684 of 2014  
("Influence of the relationship on the price paid or payable "). G/VAL/N/2/COL/3  
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  "Article 15: Influen ce of the relationship  
 
1. Where the relationship between the buyer and the seller of the imported goods  
has influenced the price agreed between the parties, the declarant shall notify 
this in the Andean Customs Value Declaration ; in such cases, the transaction 
value method may not be applied and the imported goods shall be valued 
utilizing in sequence the other methods indicated in Articles  3 and 4 of 
Decision  No. 571. 
 
2. Where no specific declaration has been made in this respect and the Customs 
Administration has justified grounds for considering that the relationship has 
influenced the price, it shall inform the importer in writing of the reasons for 
which the transaction value is deemed unacceptable, giving a reasonable period 
for reply, providing evidence to prove that the relationship has not influenced 
the price, if this is the case . In suc h cases, the provisions in Articles  16, 17 
and 18 of Decision No. 571 shall be taken into account . 
 
3. Proof that the relationship has not influenced the price shall consist of evidence 
to enable the application of one of the following two procedures : 
 
(a) Examin ation of the circumstances of the sale, covering special terms for the  
transaction which governed the price and which apply equally to independent 
buyers in the absence of any relationship, for example, market prices obtained 
from other unrelated sellers, sales contracts, the seller's price lists, the amounts 
bought . 
 
In considering the circumstances surrounding the transaction, the Customs 
Administration shall examine the following aspects : 
 
i the way in which the buyer and seller organize their commercial relations ; and 
ii the way in which the price in question was arrived at . 
 
Where it can be shown that the buyer and seller, although related, buy from and sell to 
each other as if they were unrelated, this would demonstrate that the price had not 
been influenced by the relationship . 
 
There are three situations which the Customs Administration may consider to be proof : 
 
i the price had been adjusted in a manner consistent with the normal  pricing  
practices of the industry in question ; or 
 
ii the price had  been adjusted in a way consistent with the method by  which the 
seller settles selling prices to buyers who are not related to him ; or 
 
iii the price is adequate to recover all costs plus a profit indicative of the firm's 
overall profit over a representative p eriod of time for the sale of goods of the 
same kind or class . 
 
In any event and without being requested by the Customs Administration, the importer 
may request that a study of the circumstances of the sale be conducted with regard to 
its relations with it s foreign suppliers, providing the necessary information for this 
purpose . 
 
In examining the circumstances of the sale, any relevant information and documents 
provided by an importer may be utilized and shall be subject to review and acceptance 
by the Cust oms Administration . A transfer pricing study may be one source of such 
information, in accordance with the indications in Commentary 23.1 of the Technical 
Committee on Customs Valuation . G/VAL/N/2/COL/3  
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  (b) Use of a test value as indicated in the following Article, in other w ords, a 
demonstration that the declared value of the goods complies with one of the 
customs values indicated as a test in Article 1.2(b) of the WTO Customs 
Valuation Agreement and is, therefore, acceptable for the purposes of the 
provisions in Article 1 of  the said Agreement . 
 
4. After the allotted time has expired and the importer has not responded or if the 
explanations provided were not sufficient to consider the transaction value to 
be acceptable, in application of Article 17 of Decision No. 571, the customs 
authority shall det ermine the customs value of the imported goods using the 
other methods, in accordance with the provisions in Chapter II of this Title . 
 
5. In considering whether the relationship has influenced the price, demonstrated 
facts shall be taken into account, in par ticular, the guidelines in paragraph 2 of 
the Interpretative Note to Article 1 of the WTO Customs Valuation Agreement ." 
 
(iv) How has Article  1.2(b) been implemented?  
Article 2(o), Article 16 (as amended by Article 3 of Andean Resolution No. 1828 of 
2.106) and Article 60 of the Community Regulation  adopted by Andean Resolution 
No. 1684 of 2014  regulate the use of the reference values provided for in the 
Agreement : 
"Article 2. Definitions  
 
For the purposes of applying the provisions contained in the WTO Customs Valuation 
Agreement, in Decision No. 571 and in these regulations, the following definitions are 
adopted to complement those already contained in the said Agreement . 
 
(...) 
 
(o) Test values  
 
The customs values indicated below, accepted in advance by the customs authority, in 
effect at or about the same time and used by the importer for the purpose of 
demonstrating that the first method of valuation, "Transaction value" is accepted, whe n 
the sale is between related persons:  
 
(i) the transaction value in sales to unrelated buyers of identical or similar 
goods for export to the same country of importation;  
(ii) the customs value of identical or similar goods as determined using the 
deductive value method;  
(iii) the customs value of identical or similar goods as determined using the 
computed value method . 
 
The values covered by this section are to be used solely for comparison purposes and 
may in no case replace the value declared.  
 
"Article 16: Test value s 
 
1. With regard to the definition in Article 2(o) of these regulations, a value shall 
only be considered a test value if it has been accepted by the customs authority 
for identical or similar goods imported by other importers unrelated to the seller 
and provid ed that : 
 
(a) the customs value of the identical or similar good used for the purposes of 
comparison has been determined by applying the transaction value method and 
is in effect at or about the same time as that of export of the good to be valued 
to Community  Customs Territory;  
 G/VAL/N/2/COL/3  
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  (b) the customs value of the identical or similar good used for the purposes of 
comparison has been determined by applying the deductive method and is in 
effect at or about the same time as that of sale of the good to be valued to 
Communit y Customs Territory;  
 
(c) the customs value of the identical or similar good used for the purposes of 
comparison has been determined by applying the computed value method and 
is in effect at or about the same time as that of import of the good to be valued . 
 
For this purpose, the definition of "about the same time" in Article 2(e) of these 
regulations shall be taken into account . 
 
The value determined for the imported goods in accordance with Articles  2, 3 and 7 of 
the WTO Customs Valuation Agreement shall not be considered a test value . 
 
2. Test values may only be used where importers are related to the seller, solely 
for the purposes of comparison in order to ensure acceptance of the transaction 
value, without prejudice to the other requirements laid down in Arti cle 5 of these 
regulations for its application and provided that the value declared closely 
approximates to one of the values indicated in subparagraphs  (a), (b) or (c) 
above . 
 
3. The test values in Article 1 of the WTO Customs Valuation Agreement may never 
replace the declared value . 
 
4. Where one of the test value applies, it is not necessary to examine the influence 
of the relationship on the price . 
 
If the Customs Administration already has sufficient information to consider that 
one of the test values applies or if it finds that there is a previously accepted 
customs value in its records that may be used as a test value, but is unknown 
to the importer, this test value may be used to determine the acceptability of 
the price in question, without any such request from the importer . In such 
cases, it is not necessary to require the importer to demonstrate that the test 
value applies . 
 
5. Adjustments for differences in the commercial level, in quantity or in aspects 
covered in Article  20 of these regulations sha ll be taken into account when 
applying test values ." 
 
"Article 60: Values accepted by the Customs Administration  
 
1. For the purposes of applying the test values referred to in Article  16 of these 
regulations, the transaction value of identical or similar goods method or the 
"fall-back" method, the value shall be understood to have been accepted by the 
Customs if it has been determined that it is consistent with the assumptions 
and requirements specified in the WTO Customs Valuation Agreement for 
application of each of the methods . 
 
2. If figures showing ostensibly low customs values are submitted to the Customs 
with a view to considering them to be test values or background information for 
application of the aforementioned valuation methods, the Custom s 
Administration may initiate an investigation in order to confirm or nullify them . 
 
3. Values that are being investigated or examined or values that have 
subsequently been nullified shall not be accepted ." G/VAL/N/2/COL/3  
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  (b) Price of lost or damaged goods:  
Are there any special provisions or practical arrangements concerning the valuation 
of lost or damaged goods?  
Yes, Article  7 of Andean  Community General  Secretariat Resolution  No. 1456 of 2012 and 
Article  359 of DIAN Resolution No. 0046 of 2019 regulat e the valuation of spoiled, damaged 
or deteriorated goods . 
"Article 7 : Spoiled, damaged or deteriorated goods  
 
The customs value of goods which, subsequent to their purchase but before importation, are 
found to be partly spoiled, damaged or deteriorated, with a residual value, shall be determined 
on the basis of the price actually paid or payable for the said goods at the time of purchase 
or, in its absence, on the basis of a reference price for identical or similar goods, reduced pro 
rata to  the spoiling, damage or deterioration, whose value may be determined using one of 
the following criteria:  
 
(a) an estimate by an expert unrelated to the buyer or seller, with the cost being borne 
by the importer;  
 
(b) the cost budgeted for the repairs or restorat ion; and 
 
(c) the compensation paid by the insurance company, where applicable.  
 
The customs value of goods completely spoiled, damaged or deteriorated shall be determined 
on the basis of the price estimated by an expert unrelated to the buyer or seller, the c ost 
being borne by the importer or, where applicable, the price estimated by the insurance 
company."  
 
"ART ICLE 359: C USTOMS VALUE OF SPOILED, DAMAGED OR DETERIORATED 
IMPORTED GOODS . The customs value of spoiled, damaged or deteriorated imported goods 
shall be calculated in accordance with the procedure laid down in Article  7 of Andean 
Resolution No. 1456 of 2012, or any Resolution that amends or replaces it.  
 
The costs referred to in Articles  20 and 33 of the Community Regulation adopted by Andean 
Resolution  No. 1684 of 2014, or any Resolution that amends or replaces it , shall be added to 
or deducted from this value ." 
 
2. How has the provision of Article  4 to allow the importer an option to reverse the 
order of application of Articles  5 and 6 been implemented?  
The last paragraph of Andean Community Decision No. 571 of 2003 on Customs Valuation of 
Imported Goods provides for reversal of the order of application of the methods of valuation referred 
to in paragraphs 4 and 5 (deductive value method and computed value method) , if the importer so 
requests and the customs administration so agrees . 
This option is also mentioned in Article 3 of the Community Regulation adopted by Andean Resolution 
No. 1684 of 2014.  
Thus far, no importer has asked to reverse t he order of application of Articles  5 and 6 of the 
Agreement.  
3. How has Article  5.2 been implemented?  
Article 5 of Andean Community Decision No. 571 on Customs Valuation of Imported Goods provides 
for the application of Article 5.2 , whether or not the importer so requests . 
The Community Regulation adopted by Andean Resolution No. 1684 of 2014 refers to this subject  in 
Article 45.2(b).  G/VAL/N/2/COL/3  
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  4. How has Article  6.2 been implemented?  
Under Article  47 of the Community Regulation adopted by Andean  Community General  Secretariat 
Resolution  No. 1684 of 2014, the provisions of Article 6 of the Agreement and the Interpretative 
Note thereto shall be taken into account, and in any event the consent of the producer must be 
obtained . 
5. Questions conc erning Article  7: 
(a) What provisions have been made for making value determinations pursuant to 
Article  7? 
Articles 48 and 49 of the Community Regulation adopted by Andean  Community General  
Secretariat Resolution  No. 1684 of 2014 , Andean Community Resolut ion No. 1456 of 2012 on 
Special Customs Valuation Cases and Articles  351 to 364 of DIAN Resolution No. 0046 of 2019  
provide clarification for the purposes of applying the fallback method . 
(b) What is the provision for informing the importer of the customs value determined 
under Article  7? 
Article 53 of the Community Regulation adopted by Andean Resolution No. 1684 of 2014 
provides that the importer shall be informed of reasonable doubts about the truth or accuracy 
of the declared value and the supporting documents and given a reasonable time to respond . 
When a final decision has been taken, the Customs Administration sh all notify the importer of 
the grounds for its decision . 
There is also Title  16 of Decree No. 1165 of 2019 and Title  14 of Resolution  No. 0046 of  2019. 
(c) Are the prohibitions found in Article  7.2 delineated?  
Yes, Article 49 of  the Community Regulation adopted by Andean Resolution No. 1684 of 2014 
refers to them.  
6. How have the options found in Article  8.2 been handled ? In the case of f.o.b. 
application, are ex -factory prices also accepted?  
Article 6 of Andean Community Decision No. 571 incorporate s all the elements set forth in Article  8.2 
of the Agreement  into the customs value . 
In accordance with the above, Colombia applie s c.i.f. prices, adding the elements listed in Article  8.2 
of the Agreement where necessary.  
7. Where is the rate of exchange published, as required by Article  9.1? 
The provision on currency is found in Article 21 of Decision No. 571 of 2003 . Article 15 of Decree 
No. 1165 of 2019 also refers to currency conversions.  
The current and historical exchange rates can be viewed on the National Customs and Excise 
Directorate  website  at: https://www.dian.gov.co/dian/cifras/Paginas/TRM.aspx . 
8. What steps have been taken to ensure confidentiality, as required by Article  10? 
According to Article 63 of the Community Regulation adopted by Andean  Resolution  No. 1684 
of 2014, when the informatio n provided  for the purposes of customs valuation is of a confidential 
nature  or is provided on a confidential basis , it shall not be disclosed by the customs authorit y 
without the specific permission  of the person or government providing such information, unless 
ordered by the courts . G/VAL/N/2/COL/3  
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  9. Questions concerning Article  11: 
(a) What rights of appeal are open to the importer or any other person?  
Article 65 of the Community Regulation adopted by Andean Resolution No. 1684 of 2014 
provides that Andean  Community member countries shall provide in their domestic legislation 
for a right of appeal.  
With respect to the determination of the customs value, Colombian customs law recognizes 
the right of application for reconsideration , which exhausts the adminis trative proceedings . 
(b) How is he to be informed of his right to further appeal?  
In addition to the application for reconsideration, Colombia recognizes the right to challenge 
a case before the administrative courts, thus offering an additional remedy to the one 
mentioned in the reply to the previous question.  
10. Provide information on the publication, as required by Article  12, of:  
(a) (i) the relevant national laws;  
Published in the Official Journal at: http://svrpubindc.imprenta.gov.ca/diario/ . 
(ii) the regulations concerning the application of the Agreement;  
Published in the Official Journal  at: http://svrpubindc.imprenta.gov.ca/diario/ . 
(iii) the judicial decision;  
Published in the Gazette of the Constitutional Court.  
and administrative rulings of general application relating to the Agreement;  
Published in the Official Journal  at: http:/ /svrpubindc.imprenta.gov.co/diario/ . 
(iv) general or specific laws being referred to in the rules o f implementation or 
application;  
Published in the Official Journal  at: http://svrpubindc.imprenta.gov.co/diario/ . 
(b) Is the publication of further rules ant icipated ? Which topics would they cover?  
A national decree adopting a new customs regulation  is due to be issued  shortly . It will include 
a chapter on  customs valuation , which will subsequently be  regulated by a DIAN resolution . 
These provisions will be consistent with the WTO Agreement on Customs Valuation and the 
Andean Community rul es. 
11. Questions concerning Article  13: 
(a) How is the obligation of Article  13 (last sentence) being dealt with in the respective 
legislation?  
Article 62 of the Community Regulation adopted by Andean  Community General  Secretariat 
Resolution  No. 1684 of 2014 , Article  185.5 of Decree No. 1165 of 2019  and Article  347 of 
DIAN Resolution No. 0046 of 2019  afford the importer the possibility of posting a guarantee 
when the customs authorit y has any doubts as to the declared value or if it becomes necessary 
to delay the final determination of the value of the goods.  G/VAL/N/2/COL/3  
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  (b) Have additional explanations been laid  down?  
No. 
12. Questions concerning Article  16: 
(a) Does the respective national legislation contain a provision requiring customs 
authorities to give an explanation in writing as to how the customs value was 
determined?  
Article s 680 to 684  of Decree No. 1165 of 2019  establish the terms and conditions for bringing 
special charges against the customs authorities within a period of 30  days after the alleged 
commission of the offence by the customs administration has been established . These cha rges 
must include, inter alia , the official proposal for settlement based on the application of a 
customs valuation method, which, in its turn, must be identified in the court order.  
(b) Are there any further regulations concerning an above -mentioned reque st? 
Yes, Articles 639 and 640 of  Resolution No. 0046 of 2019 . 
13. How have the Interpretative Notes of the Agreement been included?  
Under Article 2 of Andean Community Decision No. 571, member countries are required to value 
goods for customs purposes pursuant to Articles  1 to 7 of the WTO Agreement on Customs Valuation 
and the respective Interpretative Notes  thereto . Likewise, Article  4 refers to this provision in the  
General Note i n Annex I to the Agreement . 
Articles  320 and 321 of Decree  No. 1165 of 2019 provide the legal basis for the  determination of the 
customs value and define the supremacy of norms  and their mandatory application.  
14. How have the provisions of the Decision on the Treatment of Interest Charges in the 
Customs Value of Imported Goods been implemented?  
Article 22 of Andean Community Decision No. 571 stipulates that the instruments of the 
WTO Committee on Customs Valuation and the  World Customs Organizat ion (WCO) Technical 
Committee on Customs Valuation are to be taken into account for the purposes of interpretation and 
application of the valuation rules laid down in the Agreement . Moreover, Article 33(e) of the 
Community Regulation adopted by Andean Resolution No. 1684 of 2014  stipulates that the customs 
value does not include charges  for interest,  provided that the circumstances indicated in Decision 
No. 3.1 of the WTO Committee on Customs Valuation  apply.  
15. For those countries applying paragraph  2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing Equipment, how have the provisions of 
this paragraph been implemented?  
The implementation of the pro visions of the Technical Committee on Valuation i nstrument  on the 
valuation of carrier media bearing  data and instructions  (software ) for data processing equipment is 
governed by Article  353 of DIAN Resolution  No. 0046 of 2019 . 
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