WT/TPR/S/372/Rev.1  
18 September 2018  
(18-5756) Page: 1/168 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
COLOMBIA  
Revision  
This report, prepared for the fifth Trade Policy Review of Colombi a, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Colombia on its trade policies and pr actices.  
 
Any technical questions arising from this report may be addres sed to Mr Angelo Silvy 
(022 739 5249), Ms Martha Lara (022 739 6033) and Ms Stéphanie Dorange (022 739 5497).  
 
Document WT/TPR/G/ 372 contains the policy statement submitted by Colombia . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in Spanish.  
  WT/TPR/S/372/Rev.1 • Colombia  
 
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CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  9 
1   ECONOMIC ENVIRON MENT  ................................ ................................ ........................  15 
1.1   Main features of the economy  ................................ ................................ ...................... 15 
1.2   Recent economic developments  ................................ ................................ .................... 17 
1.2.1    Production and employment  ................................ ................................ ...................... 17 
1.2.2    Fiscal polic y ................................ ................................ ................................ ............ 19 
1.2.3    Monetary and exchange -rate policy  ................................ ................................ ............ 22 
1.2.4    Balance of payments  ................................ ................................ ................................ 23 
1.3   Trade and investment performance  ................................ ................................ ............... 25 
1.3.1    Trends and patterns of trade in goods and services  ................................ ...................... 25 
1.3.1.1    Merchandise trade  ................................ ................................ ................................ .25 
1.3.1.1.1    Composition of merchandise trade  ................................ ................................ ........ 25 
1.3.1.1.2    Direction of merchandise trade  ................................ ................................ ............ 26 
1.3.1.2    Services trade  ................................ ................................ ................................ ......27 
1.3.2    Trends and patterns in foreign direct investment  ................................ ......................... 29 
2   TRADE AND INVEST MENT REGIME  ................................ ................................ ............  31 
2.1   General framework  ................................ ................................ ................................ .....31 
2.2   Trade policy formulation and objectives  ................................ ................................ ......... 33 
2.3   Trade agreements and arrangements  ................................ ................................ ............ 35 
2.3.1    WTO ................................ ................................ ................................ ...................... 35 
2.3.2    Regional  and preferential agreements  ................................ ................................ ........ 36 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 39 
2.4   Investment regime  ................................ ................................ ................................ .....39 
3   TRADE POLICIES A ND PRACTICES BY MEAS URE ................................ ........................  42 
3.1   Measures directly affecting imports  ................................ ................................ ............... 42 
3.1.1    Customs procedures, valuation and requirements  ................................ ........................ 42 
3.1.1.1    New customs regulations and trade facilitation measures  ................................ ........... 42 
3.1.1.2    Customs procedures  ................................ ................................ .............................. 43 
3.1.1.3    Customs valuation  ................................ ................................ ................................ 48 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 49 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 50 
3.1.3.1    Tariff structure and policy  ................................ ................................ ...................... 50 
3.1.3.2    MFN tariff features and levels  ................................ ................................ ................. 51 
3.1.3.3    Tariff quotas  ................................ ................................ ................................ ......... 54 
3.1.3.4    Preferential tariffs  ................................ ................................ ................................ .54 
3.1.3.5    Tariff concessions  ................................ ................................ ................................ .55 
3.1.4    Other charges on imports  ................................ ................................ ......................... 56 
3.1.4.1    Value added tax (VAT)  ................................ ................................ ........................... 56 WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.1.4.2    Other taxes  ................................ ................................ ................................ .......... 57 
3.1.5    Import prohibitions, restrictions and licensing  ................................ ............................. 60 
3.1.5.1    Import prohibitions  ................................ ................................ ............................... 60 
3.1.5.2    Licences, registration and other requirements  ................................ .......................... 61 
3.1.5.2.1    Automatic licensing  ................................ ................................ ............................ 61 
3.1.5.2.2    Non-automatic licensing  ................................ ................................ ...................... 61 
3.1.5.2.3    Other measures  ................................ ................................ ................................ .63 
3.1.6    Anti-dumping, countervailing and safeguard measures  ................................ ................. 64 
3.1.6.1    General  ................................ ................................ ................................ ............... 64 
3.1.6.2    Anti-dumping measures  ................................ ................................ ......................... 64 
3.1.6.3    Countervailing measures  ................................ ................................ ........................ 67 
3.1.6.4    Safeguard measures  ................................ ................................ ............................. 67 
3.2   Measures directly affecting exports  ................................ ................................ ............... 68 
3.2.1    Customs procedures and requirements  ................................ ................................ .......68 
3.2.2    Taxes, charges and levies  ................................ ................................ ......................... 69 
3.2.3    Export prohibitions, restrictions and licensing  ................................ .............................. 70 
3.2.4    Export support and promotion  ................................ ................................ ................... 71 
3.2.4.1    Support for exports  ................................ ................................ ............................... 71 
3.2.4.1.1    Free Zones  ................................ ................................ ................................ ........ 72 
3.2.4. 1.1.1   Permanent free zones and special permanent free zones  ................................ ......72 
3.2.4.1.1.2    Temporary free zones  ................................ ................................ ...................... 75 
3.2.4.1.2    Tax Reimbursement Certificate (CERT)  ................................ ................................ .75 
3.2.4.1.3    International Trading Companies (CI)  ................................ ................................ ...76 
3.2.4.2    Export promotion  ................................ ................................ ................................ ..76 
3.2.4.3    Export financing, insurance and guarantees  ................................ ............................. 76 
3.3   Measures affecting production and trade  ................................ ................................ .......77 
3.3.1    Incentives  ................................ ................................ ................................ ............... 77 
3.3.1.1    Credit programmes  ................................ ................................ ............................... 77 
3.3.1.2    Micro, small and medium enterprises (MSME)  ................................ ........................... 79 
3.3.1.3    Support for research, development and improved competitiveness  .............................. 82 
3.3.1.4    Special Import -Export Systems or Plan Vallejo ................................ .......................... 82 
3.3.2    Standards and technical regulations  ................................ ................................ ........... 84 
3.3.2.1    Institutional and legal framework  ................................ ................................ ............ 84 
3.3.2.2    Standardization  ................................ ................................ ................................ ....86 
3.3.2.3    Technical regulations  ................................ ................................ ............................. 86 
3.3.2.4    Conformity assessment and certification  ................................ ................................ ..88 
3.3.2.5    Accreditation  ................................ ................................ ................................ ........ 89 
3.3.2.6    Metrology  ................................ ................................ ................................ ............ 90 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....90 
3.3.3.1    Policy formulation and implementation, legal framework and responsible bodies  ........... 90 WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.3.3.2    Notifications to the WTO  ................................ ................................ ........................ 92 
3.3.3.3    Animal health  ................................ ................................ ................................ .......92 
3.3.3.4    Plant health  ................................ ................................ ................................ .......... 94 
3.3.3. 5   Food safety  ................................ ................................ ................................ .......... 95 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 97 
3.3.4.1    Competition policy  ................................ ................................ ................................ 97 
3.3.4.2    Price controls ................................ ................................ ................................ ...... 100 
3.3.5   State trading, State -owned enterprises and privatization  ................................ ............  102 
3.3.5.1    State trading  ................................ ................................ ................................ ...... 102 
3.3.5.2    State -owned enterprises and privatization  ................................ ..............................  102 
3.3.6    Government procurement  ................................ ................................ .......................  104 
3.3.6.1    Overview  ................................ ................................ ................................ ...........  104 
3.3.6.2    Regulatory framework  ................................ ................................ .........................  104 
3.3.6.3    National preferences  ................................ ................................ ...........................  107 
3.3.6.3.1    Procurement control  ................................ ................................ .........................  108 
3.3.7    Intellectual property rights  ................................ ................................ ......................  109 
3.3.7.1    Overview  ................................ ................................ ................................ ...........  109 
3.3.7.2    Copyright and related rights  ................................ ................................ .................  112 
3.3.7.3    Industrial property  ................................ ................................ ..............................  113 
3.3.7.3.1    Patents  ................................ ................................ ................................ ...........  113 
3.3.7.3. 2   Trademarks  ................................ ................................ ................................ ..... 115 
3.3.7.3.3    Appellations of origin  ................................ ................................ ........................  115 
3.3.7.3.4    Industrial designs  ................................ ................................ .............................  116 
3.3.7.4    Protection of new plant varieties  ................................ ................................ ...........  116 
3.3.7.5    Undisclosed information  ................................ ................................ .......................  117 
3.3.7.6    Enforcement  ................................ ................................ ................................ ....... 117 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ ...................  119  
4.1   Agriculture, forestry and fisheries  ................................ ................................ ...............  119 
4.1.1    General characteristics and policies of the sector  ................................ .......................  119 
4.1.2    Border measures  ................................ ................................ ................................ ... 121 
4.1.3    Domestic support, subsidies and other support schemes  ................................ .............  122 
4.1.4    Financing and insurance  ................................ ................................ .........................  125 
4.1.4.1    Special Line of Credit (LEC)  ................................ ................................ ..................  125 
4.1.4.2    Rural Capitalization Incentive (ICR)  ................................ ................................ ....... 126 
4.1.4.3    Fund for Financing the Agricultural Sector (FINAGRO)  ................................ .............  126 
4.1.4.4    Agricultural Guarantee Fund (FAG)  ................................ ................................ ........  128 
4.1.4.5    Other financing schemes  ................................ ................................ ......................  129 
4.1.4.6    Agricultural insurance  ................................ ................................ ..........................  129 
4.2   Mining and energy  ................................ ................................ ................................ .... 130 
4.2.1    Mining  ................................ ................................ ................................ ..................  132 WT/TPR/S/372/Rev.1 • Colombia  
 
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  4.2.2    Hydrocarbons  ................................ ................................ ................................ ........  133 
4.2.3    Electricity  ................................ ................................ ................................ .............  135 
4.3   Manufacturing  ................................ ................................ ................................ ..........  136 
4.4   Services  ................................ ................................ ................................ ..................  138 
4.4.1    Financial services  ................................ ................................ ................................ ... 138 
4.4.1.1    Regulation and general characteristics  ................................ ................................ ... 138 
4.4.1.2    Banking  ................................ ................................ ................................ .............  143 
4.4.1.3    Insurance  ................................ ................................ ................................ ..........  144 
4.4.1.4    Securities market  ................................ ................................ ................................  146 
4.4.2    Telecommunications  ................................ ................................ ...............................  148 
4.4.3    Transport  ................................ ................................ ................................ ..............  152 
4.4.3.1    Air transport and airports  ................................ ................................ .....................  152 
4.4.3.1.1    Air transport  ................................ ................................ ................................ .... 152 
4.4.3.1.2    Airports ................................ ................................ ................................ ...........  154 
4.4.3.2    Maritime transport and ports  ................................ ................................ ................  155 
4.4.3.2.1    Maritime transport  ................................ ................................ ...........................  155 
4.4.3.2.2    Ports ................................ ................................ ................................ ..............  156 
4.4.4    Tourism  ................................ ................................ ................................ ................  158 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 160  
 
CHARTS  
 
Chart 1.1 Merchandise trade by main products, 2012 and 2017  ................................ ............... 27 
Chart 1.2 Direction of merchandise t rade, 2012 and 2017  ................................ ....................... 28 
Chart 2.1 Legislative process  ................................ ................................ ............................... 33 
Chart 2.2 Regional trade agreements in force in Colombia, 2017  ................................ ............. 37 
Chart 3.1 Frequency distribution of tariff rates, 2017  ................................ .............................. 52 
Chart 3.2 Exports from free zones, January 2012 -July 2017  ................................ .................... 75 
Chart 4.1 Institutions in the energy sector  ................................ ................................ ..........  131 
Chart 4.2 Functioning of Colombia's financial system  ................................ ............................  139 
Chart 4.3 Fixed and mobile services market, 2017 Q3  ................................ ..........................  152 
 
TABLES  
 
Table 1.1 Basic economic indicators, 2012 -2017 ................................ ................................ ....16 
Table 1.2 Central government finances, 2012 -2017 ................................ ................................ 19 
Table 1.3 Balance of payments, 2011 -2017 ................................ ................................ ........... 24 
Table 1.4 Trade in services, 2012 -2017 ................................ ................................ ................ 29 
Table 1.5 Inward flows of foreign direct investment to Colombia  by 
economic sector, 2012 -2017 Q3  ................................ ................................ .......................... 30 WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 1.6 Inward flows of foreign direct investment to Colombia by country of origin,  
2012-2017 Q3 ................................ ................................ ................................ ................... 30 
Table 2.1 Dispute settlement cases involving Colombia,  1 January  2012-31 December  2017 .......35 
Table 2.2 Features of the new regional trade agreements implemented by Colombia  
 since 2012  ................................ ................................ ................................ ....................... 37 
Table 2.3 Restrictions on private investment  ................................ ................................ ......... 40 
Table 3.1 Inspection percentages by selection channel, 2011 -2016 ................................ .......... 44 
Table 3.2 Benefits under special treatment categories  ................................ ............................ 47 
Table 3.3 Price thresholds establish ed in Decree No.  2.218 of 27  December  2017 ...................... 50 
Table 3.4 MFN tariff structure, 2011 and 2017  ................................ ................................ .......51 
Table 3.5 Summary analysis of the MFN tariff, excluding the Andean Price Band  
System (SAFP) and conditional tariffs, 2017  ................................ ................................ .......... 53 
Table 3.6 Summary analysis of preferential tariffs, 2017  ................................ ......................... 55 
Table 3.7 VAT -exempt imports  ................................ ................................ ............................ 57 
Table 3.8 Excise tax on beer, aerated waters, shandies and mixtures  ................................ .......58 
Table 3.9 Rates of excise tax on alcoholic beverages and tobacco, 2017  ................................ ...59 
Table 3.10  National excise tax, 2017  ................................ ................................ .................... 59 
Table 3.11 National tax on petrol (gasoline) and engine fuel oils (ACPM), 2017  .......................... 60 
Table 3.12 National carbon tax, 2017  ................................ ................................ ................... 60 
Table 3.13 Non -automatic import licences, 2017  ................................ ................................ ....62 
Table 3.14 Legal provisions on trade protection measures, 2017  ................................ .............. 64 
Table 3.15 Anti -dumping measures in force at 31  December  2017 ................................ ........... 66 
Table 3.16 Goods subject to export controls through the VUCE  ................................ ................ 70 
Table 3.17 Requirements applicab le to industrial and commercial users of permanent  
free zones  ................................ ................................ ................................ ......................... 73 
Table 3.18 Benefits for free zone users  ................................ ................................ ................. 74 
Table 3.19 ProColombia: export promotion performance, 2012 -2017................................ ........ 76 
Table 3.20 Bancoldex: Disbursements to exporters 2012 -2016 ................................ ................ 77 
Table 3.21 Loans granted by Bancoldex, by user and sector, 2012 -2016 ................................ ...78 
Table 3.22 Bancoldex Loan Portfolio 2012 – 2016 ................................ ................................ ..79 
Table 3.23 Classification of enterprises in Colombia, 2017  ................................ ....................... 80 
Table 3.24 Bancoldex: Credit operations for MSME s, 2012 -2016 ................................ .............. 80 
Table 3.25 Cumulative disbursements by the National Guarantee Fund, 2012 -2017 ................... 81 
Table 3.26 Programmes classified under the Plan Vallejo (SEIEX) in 2017  ................................ .83 
Table 3.27 Legal framework for technical regulations, 2017 ................................ ..................... 85 
Table 3.28 SPS Notificat ions to the WTO, 2012 -2017 ................................ .............................. 92 
Table 3.29 Business integration operations notified to the SIC, January  2012-June 2017 ............ 99 
Table 3.30 Activities of the SIC, January  2012-June 2017 ................................ .....................  100 
Table 3.31 Bodies empowered to apply price controls  ................................ ...........................  100 
Table 3.32 S tate-owned enterprises by sector and State holding, 2016  ................................ ... 103 
Table 3.33 Value of contracts awarded, by procurement method, 2012 -2017 ..........................  106 
Table 3.34 Control mechanisms for procurement procedures  ................................ .................  108 WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 3.35 Participation in treaties administered by WIPO, 2017  ................................ ............  109 
Table 3.36 Overview of intellectual property rights, 2017  ................................ ......................  111 
Table 3.37  Applications for legal proceedings before the SIC and outcomes,  2012-2016 ..........  117 
Table 3.38 Applications for legal proceedings before the DNDA and outcomes,  2013-2017 ........  118 
Table 4.1 Main agricultural sector indicators, 2012 -2017 ................................ .......................  119 
Table 4.2 Special Line of Credit, conditions for different users  ................................ ...............  125 
Table 4.3 FINAGRO lines of credit, conditions by category of user  ................................ ..........  127 
Table 4.4 Guarantees granted by the FAG, 2012 -2017 ................................ ..........................  129 
Table 4.5 Agricultural insurance  ................................ ................................ .........................  130 
Table 4.6 Percentage rate of the Agricultural Insurance Incent ives granted to producers,  
by category of producer, 2017  ................................ ................................ ...........................  130 
Table 4.7 Methods of awarding E&P contracts  ................................ ................................ ...... 133 
Table 4.8 Price control in the hydrocarbons sector  ................................ ................................  135 
Table 4.9 Concession contracts in the electricity sector  ................................ .........................  136 
Table 4.10 Regulatory texts governing financial services  ................................ .......................  138 
Table 4.11 Structure of Colombia's fin ancial system, December  2012 and 2017  .......................  139 
Table 4.12 Minimum capital requirement by type of institution, 2012 -2017 .............................  140 
Table 4.13 Deposit insurance, 2017 ................................ ................................ ....................  142 
Table 4.14 Colombian financial system indica tors, December  2012 to 2017  .............................  142 
Table 4.15 Loan portfolio and default rate trends, 2012 -2017 ................................ ................  143 
Table  4.16 Some prudential indicators for the banking sector,  
December  2012-December  2017 ................................ ................................ ........................  144 
Table 4.17 Insurance sector indicators, December  2012 to November  2017 ............................  146 
Table 4.18  Tariff regulation in 2017  ................................ ................................ ....................  150 
Table 4.19 Air transport statistics, 2012 -2017 ................................ ................................ ..... 155 
Table 4.20 Traffic indicators in maritime ports, 2012 -2016 ................................ ....................  158 
Table 4.21 Tourism sector indicators, 2012 -2017 ................................ ................................ . 159 
 
BOXES  
 
Box 1.1 The 2017 structural tax reform  ................................ ................................ ................ 21 
Box 3.1 Main changes introduced by Decree No.  1.750 of 2015  ................................ ............... 65 
Box 4.1 Objectives of energy policy  ................................ ................................ ....................  131 
Box 4.2 Telecommunication sector policy  ................................ ................................ ............  148 
Box 4.3 Air transport sector policy  ................................ ................................ .....................  153 
 WT/TPR/S/372/Rev.1 • Colombia  
 
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  APPENDIX TABLES  
 
Table A1. 1 Total merchandise exports by HS section, 2012 -2017 ................................ ...........  160 
Table A1. 2 Total merchandise imports by HS section, 2012 -2017 ................................ ...........  161 
Table A1. 3 Total merchandise exports by trading partner, 2012 -2017 ................................ .... 163 
Table A1. 4 Total merchandise imports by trading partner, 2012 -2017 ................................ .... 164 
 
Table A2. 1 Notifications under the WTO Agreements,  
1 January 2012  to 31 December  2017 ................................ ................................ ................  165 
Table A2.2 International investment agreements and agreements to avoid  
double  taxation  ................................ ................................ ................................ ................  167 
 
Table A4. 1 Tariff lines subject to preferential quotas, 2017  ................................ ...................  168 
 
 
  WT/TPR/S/372/Rev.1 • Colombia  
 
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  SUMMARY  
1. This is the fifth review of the trade policies and practices of Colombia. During the review 
period, between the beginning of 2012 and the end of 2017, Colombia's GDP grew at an average 
annual rate of 3.3%, driven chiefly by domestic demand. Having reached annual rates exceeding  4% 
in 2012 -2014, this growth subsided somewhat starting in 2015. In 201 7, GDP is estimated to have 
grown by 1.8%. This slowdown was the result of a decrease in exports, particularly oil and other 
raw materials, and a slower growth in domestic demand. Growth is expected to pick up in  2018. In 
order to stimulate the economy, th e authorities have launched an economic reform programme, 
which includes tax incentives, reductions in tariffs and other taxes, changes in the investment 
regime, and increased investment in infrastructure. Although the prospects for economic growth and 
inflation are favourable, a number of structural problems still pose a significant challenge, including 
the need to continue promoting diversification of the economy and reducing poverty.  
2. Although Colombia applies a fiscal rule that seeks to reduce the public  sector deficit to 
below  1% of GDP by 2022, the fiscal deficit hovered between 2% and 4% of GDP during most of the 
review period and it has proven impossible to initiate a downward trend. In late 2016, Colombia 
introduced a tax reform law that contained th e series of measures to improve revenue collection, 
and also provided for the gradual lowering of the profits tax to 33% by 2019.  
3. Colombia has introduced an inflation -targeting system, which aims to maintain a low and 
stable rate of inflation and achieve G DP growth close to its long -term potential. During the review 
period, inflation did remain relatively low and stable, within the range established by the Central 
Bank (Banco del la República ). Colombia has a flexible exchange -rate regime. Partly owing to t he 
fall in oil prices, the Colombian peso depreciated in real terms by almost 30% between 2012 
and 2015. This sharp downward trend was followed by a real appreciation of the peso, and then by 
a spell of stability.  
4. Colombia's foreign trade shrank considerab ly between 2012 and 2016, reacting to a sharp fall 
in the value of exports of oil and other minerals and the marked contraction in imports. Although 
Colombia exports over 4,800 different products, it remains heavily dependent on exports of 
petroleum and pe troleum products, which accounted for approximately 40% of total exports in  2017, 
followed by coal, chemical products, coffee and flowers. Colombia is currently implementing a 
strategy to diversify its export base in order to reduce its dependency on raw m aterials. Accordingly, 
it is trying to promote exports of services and non -traditional manufactured products. Colombia's 
main trading partners are the United States, the European Union, China, Mexico and  Brazil.  
5. Colombia's current account balance has tradi tionally been in deficit, mainly owing to net 
outflows on the service and income accounts. The income deficit is partly due to remittances abroad 
in respect of royalties and other payments related to the mining -energy sector. The current account 
deficit st ood at 4.3% of GDP in 2016 and 3.3% in 2017, an improvement due partly to a decrease 
in goods imports.  
6. During the review period, Colombia undertook to simplify and harmonize its regulatory 
framework by issuing single regulatory decrees containing a compila tion of all regulatory decrees in 
force for each sector. Twenty -four single regulatory decrees have been issued to date, including a 
compilation of most of the country's trade regulations. But in spite of these efforts, implementation 
of the legal and regu latory system continues to be complicated by the frequent amendments that 
are introduced, and owing to certain peculiarities of the Colombian system, the process of 
implementing such amendments can be lengthy.  
7. Colombia's trade policy objectives are set out  in the National Development Plan (PND). 
Since  2012, Colombia has continued to implement a policy of greater integration in the world 
economy, seeking better market access conditions for its exports and the best suppliers for its 
imports while endeavouring  to reduce its production costs. A number of bodies are involved in 
monitoring trade  policy. In 2017 a new law was promulgated laying down the obligation to monitor 
implementation of regional trade agreements and their impact on the different sectors of th e 
economy.  
8. Colombia is a founding Member of the WTO and has signed the protocols on 
telecommunications and financial services annexed to the General Agreement on Trade in Services. WT/TPR/S/372/Rev.1 • Colombia  
 
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  It has also acceded to the Protocol amending the Agreement on Trade -Related  Aspects of Intellectual 
Property Rights, and participates in the Information Technology Agreement. On the other hand, it is 
not a party to any of the WTO plurilateral agreements. As of March 2018, Colombia was in the 
process of ratifying the Trade Facilit ation Agreement, which was then before the Constitutional Court. 
Since its last Review in 2012, Colombia has notified the WTO of the trade measures it has adopted: 
for example, it notified its "Category A" commitments which it will implement immediately fo llowing 
the entry into force of the Trade Facilitation Agreement. At  March  2018, a number of notifications 
remained outstanding in areas such as agriculture, services, and import licensing. During the review 
period, Colombia's trade practices were the subj ect of two complaints under the dispute  settlement 
system. While Colombia itself did not file any complaints, it participated as a third party in a number 
of dispute settlement cases.  
9. Since 2012, Colombia has implemented new regional trade agreements cover ing trade in 
goods and services with the Pacific Alliance, Costa Rica, the Republic of Korea, the United States 
and the European Union. By opening up trade in the Pacific Alliance framework, Colombia is seeking 
to deepen its already existing trade relation s with Chile, Mexico and Peru. Similarly, it implemented 
a new LAIA Partial Scope Agreement with the Bolivarian Republic of Venezuela in  2012. The free 
trade agreement with the countries of the European Free Trade Association (EFTA) that had come 
into effe ct for Switzerland and Liechtenstein in 2011, became effective for Iceland and Norway in 
2014. Colombia takes part in the negotiations on the Trade in Services Agreement  (TISA).  
10. Colombia has an open investment regime: foreign private investment is allowed in all sectors , 
except where prohibited on security grounds. Foreign i nvestors may set up business through 
commercial companies and may have subsidiaries in the country. Generally speaking, no prior 
authorization is required to invest in Colombia except in  the mining and hydrocarbon s sector or in 
the financial sector. Registration of foreign investments is mandatory. The procedure s for registering 
foreign direct investments made under contractual  arrangements was simplified in  2017. While 
financial stabilit y contracts were eliminated at the end o f 2012 owing to their high  cost, t hose that 
had been signed before then remain in force until their termination.  
11. Colombia has essentially been seeking to open up its trade regime, and since its last Review 
in 2012, i t has adopted a number of measures to modernize the legal framework and facilitate trade. 
For example, it has introduced a number of improvements to the customs system, including the 
strengthening of the Single Window for Foreign Trade (VUCE) and the introduction of the r isk 
management system, which has meant fewer  inspections and reduced  clearance time. In 2016 
Colombia also adopted a new Customs Sta tute with a view to modernizing and  simplifying its 
regulations and harmonizing them with best international practices. The main changes include a new 
risk management system; new categories of foreign exchange operators; the elimination of the 
obligation to use a cus toms agent/ broker after a transition period; the possibility of requestin g early 
decisions; abbreviated customs clearance; electronic payment; and improvements in the system of 
guarantees. The new Customs S tatute provides for phased implementation, and some measure s will 
only be implemented when the development of the computer systems permits. Colombia continues 
to use reference prices as control tools in case a dispute arises between the customs authority and 
the declarant concerning the declared value.  
12. During the period under review, Colombia continued to implement  the Struct ural Tariff Reform 
(REA) initiated  in 2011 with a view to reducing tariff dispersion and tackling negative effective 
protection. In 2017, the Colombian tariff contained 7,708 ad-valorem  lines at the 2017 HS ten -digit 
level. The average MFN applied tariff r ate in 2017 was 7.1%  (7.9% if the average tariffs under the 
Andean Price Band System are included) , and Colombia applied 13 different tariff rates ranging from 
0% to 98%. Some 49.7% of lines were z ero-rated, while only 6.2% were subject to a rate exceeding  
15%. The average tariff for agricultura l products (WTO definition) was  15.4% in 2017, wh ereas the 
average tariff on non -agricultural products was 5.8%. The highest average duties per WTO category 
continued to be for dairy products, clothing , and animals a nd animal products, with average tariffs 
of 55.1%, 40% and 20.3% respectively. Colombia offers two kinds of tariff concessions: the first 
type is based on the export or import regime, and the second is designed to promote specific sectors 
of the Colombian economy, to which end , between  2011 and 2017 concessions were granted to the 
automotive sector, industry in general, the agriculture and livestock sector, and government.  
13. Colombia applies the Andean Price Band S ystem (SAFP), which consists of variable duti es 
calculated on the basis of a reference price that is fixed periodically. The SAFP  is used for imports of 
palm oil, soya oil, white rice, white sugar, raw sugar, pig m eat, barley, whole milk, yellow  maize, WT/TPR/S/372/Rev.1 • Colombia  
 
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  white maize, yellow soya, wheat , and chicken cut s. Colombia temporarily applies the  WTO bound 
tariff to imports of footwear and clothing entering at prices below or equal to certain  threshold s 
established by decree for the corresponding tariff heading s. Moreover, Colombia has also adopted 
measures to pr event and control customs fraud affecting imports of clothing, fibres, yarns and woven 
fabrics , and footwear, regardless of the country of origin and/or provenance, where the declared 
f.o.b. price was less than or equal to the threshold established by  decree. 
14. In addition to tariffs, imp orts are subject to payment of value a dded tax (VAT), which is levied 
at the same rate on domestic and imported goods. Imports of certain types  of machinery and 
equipment not produced in Colombia are excluded from payment of VAT, as are  product s imported 
under special import -export programmes and , as from January 2017, goods delivered by express 
delivery or courier of a value not exceeding US$200. Certain products, both domestic and imported, 
are subject to an excise tax. In D ecember 2016 there was a change in the regime governing excise 
tax on spirits and wines , involving the elimination of the de facto  discrimination that resulted from 
the application of a higher tax for beverages wit h an alcoholic strength of over  35° (mostly imported 
beverages) than for those with a lower alcoholic strength, such as locally produced aguardiente.  
15. For most tariff lines, Colombia has import registration and licensing requirements. It applies 
an automatic licensing system (free importatio n) which requires prior import registration for goods 
subject to  permits and authorizations imposed by  control entities (more than 6,000 tariff lines). In 
addition, Colombia applies a non -automatic licensing system for 180 tariff lines under which a licenc e 
must be obtained prior to importation. Registration and import licensing takes place on line through 
the VUCE.  
16. Colombia' s recourse to anti -dumping measures increased during the review period. 
Between  2012 and 2017, it initiated 45 anti -dumping investigati ons, as compared to 25 between 
2006 and 2011. It applied 29 definitive duties and 13 provisional duties, and carried out 15 sunset 
reviews, 14 of which resulted in extension of the duties. At the end of December 2017, Colombia 
maintained 17 definitive anti -dumping duties on imports from five trading partners. The products 
covered included tableware and kitchenware, products from the steel and aluminium industries, and 
certain plastics and chemical products. At the same date, 12 proceedings were under way, i nclud ing 
new investigations and five -year reviews. Between 2012 and 2017, Colombia opened four safeguard 
investigations which gave rise to two provisional measures and one definitive measure. 
No countervailing duties were applied, nor were any subsidy inve stigations initiated.  
17. Generally speaking, there are no export restrictions, except in the case of certain products 
which , by law or under international agreements , are subject to authorizations, certificates or prior 
clearance. These requirements are proce ssed by the VUCE. While exports do not give rise to VAT, 
parafiscal contributions are applied to exports of mild coffee, unset emeralds and coal to help 
promote the development of those sectors.  
18. The export support programmes mentioned in the previous repor t remain in place, although 
some of them have not been used. In 2016, the free zone regime was modified in order to unify and 
simplify the rules and facilitate access to the regime. In order to operate in a free zone, candidates 
must meet minimum investmen t, equity and job creation requirements, in exchange for tax 
concessions  and simplified c ustoms formalities. Sale to the national customs territory of goods or 
services produced in the free zone is permitted subject to payment of the corresponding duties a nd 
taxes on the foreign component. A t June 2017, the free zones had generated about  175,000  direct 
and indirect jobs. The regime for International Trading Companies (CI) allows the purchase of goods 
with exemption from VAT, provided they are exported withi n six months. T here were  265 authorized 
CIs at the end of 2017. Colombia has no official export insurance programmes.  
19. Colombia has a range of tax, credit , and promotion an d support incentives used both to attract 
domestic and foreign investment and to prom ote the development of specific sectors. A s regards 
credit incentives, Bancoldex, Colombia's business development and foreign trade bank, offers both 
financial and non -financial products and services to Colombian enterprises, meeting the credit needs 
of bo th exporting and non -exporting countries. During the period under review, the Colombian 
authorities continued to promote micro, small and medium enterprises (MSME s), which benefit from 
special tax regimes and financing by the Colombian Fund for Modernizati on and Technological 
Development of MSMEs. The National Support System for MSMEs organizes the mechanisms of 
financial and non -financial support for such enterprises. Colombia supports scientific and WT/TPR/S/372/Rev.1 • Colombia  
 
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  technological development through tax incentives to pers ons or enterprises that undertake 
innovation or technological development activities.  
20. Colombia continues to use the Plan Vallejo, or Special Import -Export Systems (SEIEX), a 
mechanism under which goods may be imported temporarily with total or partial exem ption from or 
suspension of customs duties and taxes or deferral or elimination of payment of VAT. T he Plan covers 
inputs , raw materials, intermediate goods, capital goods and spare parts used in the production of 
goods for export or for the provision of s ervices directly linked to the production or export of such 
goods or for the export of services. The benefit consists of the allocation of an import quota with 
export -linked tax benefits. The concessionary nature of the SEI EX has been considerably eroded b y 
the recent decision to reduce permanently to 0 % the duty applied to capital goods and raw materials 
not produced in Colombia.  
21. The preparation of technical regulations in Colombia is not centralized, and is the responsibility 
of various institutions, prim arily ministries, regulatory commissions and decentralized bodies. 
However, in practice similar procedures are adopted: with the introduction of the Integrated 
Management System (SIG) in 2017, a procedure was agreed for the preparation and issuance of 
technical regulations  which compiles recommendations on good practices in technical regulation. 
Technical regulations are issued through decrees  and resolutions, an d exceptionally through laws. 
During the period from January 2012 to the end of 2017, Colombia s ubmitted 62 substantive 
notifications to the WTO Information Centre (126 if the addenda and corrections are included). At  
December 2017, 105 technical regulations  were in force in Colombia. The products covered include 
a range of food products, fuels, medi cines, chemical products,  containers and fertilizers, and 
products that have an environmental impact. A lso at  December 2017 , there were 27 bodies 
accredited for product certification. Since 2015, technical regulations  must be reviewed by the 
regulatory ent ity in order to determine whether they should be maintained, modified or repealed, at 
least once every five years, or earlier if there i s a change in the circumstances that gave rise to 
them.  
22. The formulation and implementation of sanitary and phytosanitary  measures (SPS) in 
Colombia falls under the remit of various bodies or agencies that make up the sanitary and 
phytosanitary system, which operates on the principl e of harmonizing policies in the various fields. 
Although SPS measures are adopted by the risk  assessment agency in each specific area, the bodies 
responsible for issuing SPS measures follow certain common guidelines , including harmonization 
with international guidelines used by reference bo dies in the field. Proposed SPS  measures must 
include a te chnical rationale and be sent for public consultation. During the review period, 
47 notifications were made, of which 12 related to animal health, 12 to plants and  23 to other areas, 
chiefly food, veterinary medicines and fertilizers. At 31  December  2017 t here were  496 SPS 
measures in force in Colombia. Some of the adopted measures had been in force for several years, 
though in some cases  only partially , since portions of them have been  repealed.  
23. The general competition protection regime in Colombia covers all sectors and economic 
activities. However, in certain sectors considered to be of fundamental interest such as agriculture, 
anti-competitive agreements are exc eptionally allowed in order to e nsure sectoral stability. No such 
agreements were authorized b etween 2012 and 2017. During the review period, Colombia issued 
new regulations on notification and pre -assessment of mergers, notably the setting of a maximum 
timeframe for assessment decisions and the whistle  blowing programme. Between 2012 and 2017, 
the Supervisory Authority for Industry and Trade (SIC), the national authority designated to apply 
competition rules, carried out 92 investigati ons and imposed penalties in  72 cases. During the same 
period, measures were taken to improve implementation of the  competition protection regime: work 
began on compiling SIC administrative acts, the regulations and jurisprudence, and SIC human 
resources were increased. Colombia applies price controls to medicines and medical devices, 
agrochemicals, milk, gasoline, nat ural gas, liquefied petroleum gas, drinking water, sanitation and 
electricity.  
24. Colombia's territorial subdivisions, known as departments, enjoy autonomy for exercising a 
monopoly on spirits  with discretion to allocate revenue. A law was enacted in 2016 tha t regulates 
import/distribution permits for spirits  and production contracts through which the departments 
exercise the monopoly. The law requires that the monopoly be in accordance with the principals of 
non-discrimination, free competition and market acc ess, and prohibits the establishment of 
minimum or maximum shares of the quantity of spirits that can be introduced or the setting of 
minimum sale prices. With regard to State-owned enterprises, Colombia has adopted a policy aimed WT/TPR/S/372/Rev.1 • Colombia  
 
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  at improving the relevant  regulatory framework and corporate governance to enable them to create 
value. 
25. Government procurement accounts for more than 15 % of GDP. Colombia is not a party to the 
WTO Plurilateral Agreement on Government P rocurement, but is an observer in the committe e. 
During the period under review, Colombia pursued its efforts to modernize the government 
procurement system and make it more efficient and transparent. The principal changes include 
establishing the National Government Procurement Agency , Colombia Compr a Eficiente ; codifying 
procurement best practices ; implement ing framework agreements;  computeriz ing the procurement 
process ; and introducing amendments  to the regulatory framework. At the same time , Colombia 
continues to use the government procurement regi me as a tool for boosting domestic industry and 
employment, chiefly by applying preferences. Moreover, most of the contracts are still awarded by 
single tendering: the total value of contracts awarded by that method exceeds the total value of 
contracts awa rded by all of the other procurement methods.  
26. During the review period, Colombia adopted measures to strengthen its int ellectual property 
regime and  adapt it to technological developments and to its international commitments. The 
changes focused on: adjusting the rules; optimizing the administration of intellectual property rights 
(IPR); streamlining registration procedures; consolidating inter -institutional coordination; and 
strengthening enforcement. In this connection, the entities responsible for IPR administration were 
granted jurisdictional powers to handle first instance civil proceedings relating to IPR infringements. 
At the same time, enforcement measures relating to trademark rights were strengthened, a general 
enforcement strategy was develo ped, and the Customs Authority was empowered to suspend the 
importation, exportation or transit of goods on grounds of infringement of copy right or trademark 
rights. But in spite of the progress made , challenges remain, such as creating greater awareness 
and use of intellectual property rights in the country, beefing up the fight against counterfeiting and 
piracy (including in the digital sphere) and building institutional capacity and cooperation in order to 
improve enforcement.  
27. In the agricultural sector,  Colombia boasts a relatively high degree of food sufficiency, an 
estimated 85 % of internal demand for food being met by domestic production. At the same time, its  
agricultural export markets continue to be  characterized by concentration, given that 68.3 % of 
agricultural exports in 2016 were made up of three products: coffee, flowers and bananas. The 
review period saw the implementation of the Colombia Siembra  ("Colombia Sows") p lan, whose 
objectives are to boost agricultural supply in order to guarantee fo od security in the country; expand 
production area and yields; improve incomes for producers; and strengthen technological 
development and services in the agricultural sector. In terms of boosting agricultural supply, 
Colombia Siembra  sets annual targets f or increasing the planted area, seeking to expand the area 
devoted to the production of, inter alia , modified maize and forestry products, rice, barley, rubber, 
soya, oil palm and coco a. Colombia promotes the use of Price Stabilization Funds (FEPs) in orde r to 
deal with fluctuations in world prices for certain agricultural products. The resources for these funds 
come from parafiscal charges, mainly charges levied on producers which remain outside the national 
budget and are reinvested by the private sector in programmes of benefit to the activity from which 
they are sourced. In 2017, there were FEPs for cotton, sugar, coco a, meat, milk and products  
thereof;  and palm oil.  
28. The private sector may engage in  exploration and extraction activities through mining 
concession and hydrocarbon e xploration and production (E& P) contracts , paying the corresponding 
royalties and other duties to the State. To stimulate private investment in the exploration and 
production of hydrocarbons , a new method of awarding E& P contracts  was introduced in 2017, the 
"permanent competition" process, under which the State can offer new areas throughout the year 
without recourse to the periodic rounds. As of the beginning of 2018, the relevant regulations were 
not yet in place. Also to stimul ate investment, in 2017 the authorities adopted and implemented the 
Tax Reimbursement Certificate, which may be used to pay taxes. As from 2015, with a view to 
diversifying the energy matrix, projects using non -conventional sources may receive tax or tarif f 
concessions. Subsidies continue to be granted for monthly subsistence consumption of gas and 
electricity, and since 2014, of LPG.  
29. In the financial services area, f oreign banks and insurance companies may establish branches 
in Colombia, and since 2013, th ey may set up subsidiaries.  Cross-border trade in insurance has also 
been allowed  since 2013. During the review period, Colombia strengthened the regulatory 
framework for its financial system. The Law on Financial Conglomerates and Mechanisms for the WT/TPR/S/372/Rev.1 • Colombia  
 
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  Resol ution of Financial I nstitutions , are promulgated in 2017, strengthens the supervision of financial 
groups by the Financial Supervisory Authority of Colombia. Further improvements were also made 
to the prudential rules to ensure that the institutions of the  Colombian financial system adopt best 
international practices ; this has led, for example, to  the creation of a minimum solvency ratio . 
Financial inclusion was enhanced  and a new type of financial institution created to promote the use 
of electronic deposi ts and payments.  
30. During the period under review, Colombia strengthened the institutional framework for 
telecommunication s, giving increased autonomy to the Communications Regulatory Commission in 
the decision making process. Efforts were made to promote gr eater competition and a better offering 
on the mobile services market: for example, the operating conditions for virtual mobile operators 
were streamlined, minimum duration clauses were prohibited and the provision of national roaming 
services became manda tory. Tariffs continued to be regulated in the sector, particularly in the mobile 
voice market where on e operator still holds a dominant  position. With the exceptio n of broadcasting, 
there are no  restrictions on private investment in the sector.  
31. Cabotage services are restricted to  Columbian vessels or aircraft. In practice, however, 
exceptions are made and maritime cabotage is provided by vessels under both  Colombian and 
foreign flags. Colombia has continued to liberalize the provision o f air transport ser vices. Since  2012, 
it has signed 13 new agreements and revised 15 agreements to introduce a greater degree of 
operational flexibility. Airports and ports may be put out on concession to the private sector. 
Companies wishing to provide tourism services in C olombia have to be listed in the National Tourism 
Register. Companies in the sector are eligible for tax concessions  and may request financing on 
preferential terms.  
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  The sectoral composition of Colombia's gross domestic product (GDP) changed in several ways 
during the period under review (Table 1.1), chiefly as the mining sector's share shrunk from 11 % of 
GDP in 2012 to 5.3 % in 2017. This partly reflects the fall in international hydrocarbons prices and 
hydrocarbons output , compounded by coal production, which flatlined until 2015. Manufacturing also 
saw its GDP share drop from 12.2 % in 2012 to 11.2 % in 2017, having grown more slowly than other 
more dynamic sect ors of the economy. The agriculture sector expanded from 5.8 % of GDP in 2012 
to 6.5 % in 2017, having grown by a slightly higher annual average (3.5 %) than that of GDP as a 
whole (3.3 %). The GDP share of financial and real -estate services also increased dur ing the period. 
Per capita GDP was US$6,273 in 2017, down from US$7,936 in 2012, partly owing to the 
depreciation of the Colombian peso (Col$) against the US dollar.  
1.2.  Colombia's foreign trade, particularly on the export side, was seriously affected from 201 4 
onwards by the drop in international oil prices. This has resulted in weaker GDP growth, a larger 
current -account deficit on the balance of payments and lower national income and tax revenues. 
Nonetheless, by adopting suitable macroeconomic policies, Col ombia has managed to overcome the 
damage caused by this external shock. This has been facilitated by the adoption of a Fiscal  Rule 
(see below), which makes it possible to isolate the cyclical component of the structural fiscal deficit 
and thus provide greater room for manoeuvre when responding to external shocks. A  flexible 
exchange -rate policy also facilitates adjustment.  
1.3.  Despite significant achievements in the last decade, poverty levels remain high, with the 
World  Bank reporting a poverty headcount r atio of 28 % in 2016, albeit down from the 34 % recorded 
in 2011.1 The Colombian authorities use "monetary poverty" and "extreme monetary poverty" as 
indicators2; and both have decreased substantially in recent years. The rates of monetary poverty 
and extrem e monetary poverty were 28.0 % and 8.5 %, respectively, in 2016. Monetary poverty 
affected 24.9 % of the urban population in that year, compared to 38.6 % among people living in 
rural areas. The authorities consider that the poverty reduction achieved since 20 10, with close to 
3.2 million people having been lifted out of monetary poverty and 1.4  million from extreme monetary 
poverty, is the result of progress made in creating jobs and reducing informality, supported by social 
initiatives.3 
1.4.  The slump in oil pric es that began in 2014 represented a structural shock for the Colombian 
economy. In response to this, and to steer the economy on to a path of higher and more sustained 
economic growth, the authorities found it necessary to develop a macroeconomic policy st rategy 
aimed at strengthening the production base.4 In this connection, the medium -term macroeconomic 
programme known as " Colombia Repunta " (Colombia bounces back), which was introduced in 
February  2017, contains a number of economic competitiveness -enhanc ing measures. The 
programme's aims are to: revive investment, reduce exchange -rate volatility by maintaining a 
flexible exchange -rate regime, press ahead with infrastructure works and boost tax revenue. The 
incentives considered to promote private investme nt include: full deduction of value added tax (VAT) 
on capital goods; a uniform tax of 20 % for free zones; new tax benefits for hotels and tourism; tax 
incentives for power generation from renewable sources and also for firms in the areas most affected 
by the armed conflict; greater investment to support housing growth and education; simplification 
of the foreign -investment regime; tax rebates for new investments in hydrocarbons and mining; and 
                                                
1 Online information from the World Bank, viewed at: https://datos.bancomundial.org/pais/colombia . 
2 The National Administrative Department of Statistics of Colombia (DANE) defines the poverty line as 
the monetary value of a basket of goods and services that meets the basic needs of a person or household. 
A household with four people is considered poor i n monetary terms when its monthly income is below 
Col$956,820 (about US$330) in urban zones or Col$573,024 (US$198) in rural areas; and it is considered to 
be in extreme monetary poverty when its income is lower than Col$391,160 (US$135) on average.  
3 Ministry of Finance (2017), Marco Fiscal de Mediano Plazo 2017 . Viewed at: 
http://www.minhacienda.gov.co/Ho meMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=latestreleased . 
4 Idem.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  the permanent elimination of duties on more than 3,400 tariff l ines corresponding to raw materials 
and capital goods that are not produced in Colombia (Section  3.1.3).5 
1.5.  In June  2016, the International Monetary Fund (IMF) approved a new two -year Flexible Credit 
Line (FCL) arrangement for Colombia in an amount equivalen t to SDR 8,180  million (about 
US$11.5  billion).6 This replaced the previous SDR  3,870  million (around US$5.4  billion) 
arrangement. The Colombian authorities have stated their intention to treat the new arrangement 
as precautionary and to refrain from drawi ng on it. When justifying the credit, the IMF noted that 
Colombia's macroeconomic policies provide it with the flexibility needed to cope with the fall in oil 
prices. In June  2017, the IMF Executive Board reaffirmed Colombia's continued qualification to 
access FCL resources.7 
Table 1.1 Basic economic indicators, 2012 -2017  
 
2012  2013  2014  2015  2016a 2017a 
Gross domestic product, seasonally adjusted series (GDP)  
Current GDP (Col$  billion)  664,240  710,497  757,065  799,312  855,432  912,525  
Current GDP (US$  billion)  369.7  380.2  378.2  291.5  280.1  309.2  
Real GDP, growth rate (%)  4.0 4.9 4.4 3.1 2.0 1.8 
GDP per capita (US$ at current prices)  7,936  8,068  7,935  6,048  5,746  6,273  
By branch of economic activity (%  of GDP at current prices)  
Agriculture, livestock, hunting, forestry and fishing  5.8 5.6 5.7 6.0 6.7 6.5 
Mining and quarrying  11.0 10.2 8.4 6.4 4.9 5.3 
Manufacturing  12.2 11.8 11.5 11.4 11.6 11.2 
Electricity, gas and water supply  3.4 3.3 3.3 3.4 3.6 3.6 
Construction  8.0 8.8 9.5 9.3 9.6 9.0 
Commerce, repairs, restaurants and hotels  11.3 11.5 11.7 12.3 12.7 12.5 
Transport, storage and communications  5.7 6.0 6.2 6.6 6.4 6.2 
Financial institutions, insurance, real -estate and business 
services  18.7 18.6 18.9 19.2 19.5 19.8 
Social, community and personal services  15.5 16.1 16.4 16.7 16.7 17.2 
Subtotal value added  91.5 92.0 91.6 91.3 91.7 91.4 
Non-deductible VAT  5.7 5.0 5.3 5.3 5.0 5.4 
Import duties and taxes  0.7 0.6 0.7 0.7 0.6 0.5 
Taxes, excluding VAT  2.3 2.6 2.7 2.8 2.8 2.8 
Subsidies  0.2 0.3 0.2 0.2 0.1 0.1 
Taxes and subsidies  8.5 8.0 8.4 8.7 8.3 8.6 
Real growth rate by branch of economic activity (%, based on GDP at current prices)  
Agriculture, livestock, hunting, forestry and fishing  2.5 6.5 2.7 2.5 1.6 4.9 
Mining and quarrying  5.3 5.0 -1.2 0.2 -7.0 -3.6 
Manufacturing  0.1 0.9 1.0 1.7 3.4 -1.0 
Electricity, gas and water supply  2.3 3.0 3.4 3.0 -0.8 1.1 
Construction  5.9 11.5 10.3 3.7 4.5 -0.7 
Commerce, repairs, restaurants and hotels  3.9 4.5 5.0 4.6 2.6 1.2 
Transport, storage and communications  3.9 3.3 4.6 2.6 0.6 -0.1 
Financial institutions, insurance, real -estate and business 
services  5.1 4.6 5.8 5.1 4.4 3.8 
Social, community and personal services  4.6 5.9 5.2 3.1 2.0 3.4 
Subtotal value added  3.9 5.0 4.3 3.3 2.2 1.5 
Non-deductible VAT  4.8 3.1 5.7 1.2 0.7 6.3 
                                                
5 Ministry of Finance (2016), Colombia Repunta . Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
063099%2F%2FidcPrimaryFile&revision=latestreleased . 
6 IMF, Press Release No.  16/279 of 13  June 2016.  IMF Executive Board Approves New Two -Year 
US$11.5 Billion Flexible Credit Line Arrangement for Colombia . Viewed at: 
http://www.imf.org/en/News/Articles/2015/09/14/01/49/pr16279 . 
7 IMF, Press Release No.  17/211 of 6  June 2017. IMF Executive Board Completes Review of Colombia's 
Performance under the Flexible Credit Line Arrangement. Viewed at: 
http://www.imf.org/en/News/Articles/2017/06/06/pr17211 -imf-executive -board -completes -review -of-
colombia -performance -under -the-fcl-arrangement . WT/TPR/S/372/Rev.1 • Colombia  
 
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2012  2013  2014  2015  2016a 2017a 
Import duties and taxes  10.3 6.3 9.3 0.7 -2.9 -4.6 
Taxes, excluding VAT  5.0 5.8 5.4 2.0 1.4 2.4 
Subsidies  3.5 5.9 9.1 29.1 -0.5 1.5 
Taxes and subsidies  5.4 4.0 5.7 0.7 0.6 3.9 
Gross domestic product  4.0 4.9 4.4 3.1 2.0 1.8 
Real growth rate by expenditure category (%, based on GDP at current prices)  
Total consumption  4.8 4.6 4.4 3.6 1.7 2.2 
 Household consumption  4.4 3.4 4.3 3.2 1.5 1.7 
 Government final consumptionb 6.3 9.2 4.7 5.0 2.4 4.0 
Gross capital formationc 4.3 6.3 11.6 1.2 -3.3 0.1 
 Gross fixed capital formation  4.7 6.8 9.8 1.8 -2.7 0.1 
 Variation in inventories  0.9 -53.1 392.9  -29.4 -55.3 -2.4 
Final domestic demand  4.7 5.0 6.1 3.0 0.5 1.7 
Total exports  6.0 5.2 -1.5 1.2 -1.2 -0.6 
Total imports  9.1 6.0 7.9 1.4 -7.3 0.2 
Monetary indicators  
Monetary base (Col$  billion, end of period)  56,463  61,041  70,461  82,519  84,598  88,811  
M1 (12 -month rate of change, %)  6.5 14.4 11.7 10.4 -1.3 6.4 
M3 (12 -month rate of change, %)  15.6 13.2 9.4 11.7 7.1 7.3 
Central bank intervention rate (%)d 5.3 4.3 5.5 6.8 8.5 5.8 
Term deposit certificates (CDTs), (%)90 days  5.3 4.2 4.0 4.4 6.5 5.8 
Consumer price index (annual average, Dec. 2008 = 100) 111.2  113.5  116.8  122.6  131.8  137.5  
Consumer price index (end of period, Dec. 2008 = 100)  111.8  114.0  118.2  126.1  133.4  138.9  
Producer price index (end of period, Dec. 2014 = 100)  94.4 94.3 100.0  105.5  107.8  111.3  
Representative market exchange rate (annual average, 
Col$/US$)  1,797.8  1,869.1  2,000.3  2,742.4  3,051.0  2,951.3  
Real exchange rate index (total trade, December) (an 
increase corresponds to a depreciation) (1994 = 100)e 96.1 102.1  117.4  143.8  125.9  127.8  
Employment  
Total national employment (thousand)  20,397  20,785  21,250  21,795  21,958  22.355  
Unemployment rate (% of EAP, end of period)f 9.6 8.4 8.7 8.6 8.7 9.4 
Memorandum item  
Population (thousand)  46,582  47,121  47,662  48,203  48,748  49,292  
a Preliminary figures.  
b Government final consumption includes the final consumption expenditure of non -profit institutions 
serving households, (NPISH).  
c Fixed capital formation plus variation in inventories.  
d Central bank intervention rates for open market operations (OMO). Expansion wind ow. 
e The real exchange rate index (ITCRIPC (T)) uses the consumer price index (CPI) as a deflator and 
total weightings. Total weightings correspond to the share, applying a twelfth -order moving average 
time series, of each country in Colombia's foreign tr ade (imports and exports) with its 20 main 
partners.  
f The data available for 2017 refer to the third quarter (Q3).  
Source:  National Administrative Department of Statistics (DANE); Banco de la República de Colombia (BRC); 
and Ministry of Social Welfare.  
1.2  Recent economic developments  
1.2.1   Production and employment  
1.6.  The 2012 -2017 period was one of moderate economic growth, with GDP expanding by an 
average of 3.3 % per year. The authorities view the slowdown in the Colombian economy in terms 
of an adjustment to deteri orating terms of trade and a lower level of national disposable income.8 
                                                
8 Banco de la República (BRC) (2017), Reporte  de Estabilidad Financiera , September  2017. Viewed at: 
http://www.banrep.gov.co/sites/default/files/publicaciones/archivo s/reporte -estabilidad -financiera -septiembre -
2017.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  1.7.  As in the past, domestic demand was the main driver of economic growth during the review 
period, growing at an average annual rate of 3.8 % between 2012 and 2017. Nonetheless, in 2015 
and 2016 it faltered abruptly, expanding by just 0.3 % in the latter year, well below overall 
GDP growth of 2.0 %. Domestic demand itself was driven mainly by investment in 2012 -2014, when 
it expanded at an average annual rate of 7.4 %. Since then, however, g ross capital formation has 
slowed sharply, and it actually contracted by 4.5 % in 2016 before rebounding only slightly in 2017. 
This reflects a reduction in investment in the mining and hydrocarbons sector in the wake of lower 
international prices. The GDP share of investment expanded from 27.4 % in 2012 to 29.7 % in 2014, 
before slipping back in 2015 and 2016, to a share of 25.3 %. The drop in the investment rate is 
chiefly explained by weaker private investment, which represented 18.8 % of GDP in 2016, 
0.7 percentage points less than in the previous year, owing to lower investment in the 
petroleum  sector.  
1.8.  The authorities consider that the lacklustre performance of domestic demand in 2016, 
particularly in the investment category, helped to narrow the external im balance 
(savings -investment gap) from 6.4 % of GDP in 2015 to 4.4 % a year later.9 For 2017, the Colombian 
economy's savings -investment gap is estimated at 3.6 % of GDP, reflecting the recovery of exports 
and stronger business investment.  
1.9.  Private consumption was another major driver of growth between 2012 and 2014, when it 
expanded at an average annual rate of 4.6 %. Since 2015, however, rates have slowed to around 
2% in 2016 and 2017. Under the Fiscal Rule (see below), public consumption has continued to be 
used as a countercyclical tool to spur economic growth, expanding faster than GDP in both 2014 and 
2015. Public investment represented 6.7 % of GDP in 2016, higher than the average rate of the last 
ten years due partly to a continuation of the National Govern ment's housing programmes and new 
road building.  
1.10.   Net exports contributed negatively to GDP in 2012 -2015, mainly owing to burgeoning imports. 
In 2016, the contribution was positive, primarily as imports slackened, while exports of goods and 
services contrac ted but by relatively less. In 2017, there was a slight upturn in exports and, to a 
lesser extent, in imports.  
1.11.   Preliminary data indicate that real GDP grew by 1.8 % in 2017, in line with the IMF  estimate.10 
This result was also consistent with the Central Ba nk's growth forecast of between 1.6 % and 1.8 % 
for the year. It is estimated that a gradual process of economic recovery began in the second quarter 
of 2017, sustained by domestic demand, in particular public expenditure, and to a lesser extent by 
private s pending, which was dampened by the hike in VAT.11 Domestic demand grew by 1.7 % in 
2017, slightly less than GDP as a whole, mainly hindered by the weaker dynamic of gross capital 
formation. Total consumption performed more strongly than in the previous year,  expanding by 
2.2% year-on-year, while net exports again detracted from GDP  growth.  
1.12.   The authorities see potential GDP growth growing by between 3.6 % and 3.9 % over the next 
decade. In view of this, they expect production to expand at a rate below potential in 2017 and 
2018, and then gather pace. For example, the Ministry of Finance anticipates GDP growth of 2.7 % 
in 2018, but it expects the rate to pick up as from 2019.12 
1.13.   Unemployment dropped sharply during the review period, particularly between 2012 (9.6 %) 
and 2016 (8.7 %). In the following year, the rate climbed back to 9.4 % as the Colombian economy 
slowed. This increase in unemployment, which was less than expected, was accompanied by 
reductions in overall labour -market participation, which edged down from 6 4.7% in 2015 to 64.5 % 
                                                
9 Ministry of Finance (2017), Marco Fiscal de Mediano Plazo 2017 . Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=latestreleased . 
10 Online information from the IMF, viewed at: http://www.imf.org/en/Countries/COL . 
11 BRC (2017), Informe sobre Inflación , September  2017. Viewed at: 
http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/informe_sobre_inflacion_septiembre_2017
.pdf. 
12 Ministry of Finance (2017), Marco Fiscal de Mediano Plazo 2017 . Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=latestreleased . WT/TPR/S/372/Rev.1 • Colombia  
 
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  in 2016, and in the employment rate, which slipped from 59.0 % in 2015 to 58.5 % a year later – 
although it remains at historically high levels, posting its second highest value since 2001.13 
1.2.2   Fiscal policy  
1.14.   Fiscal policy in Colombia is fo rmulated and implemented by the Ministry of Finance and Public 
Credit, pursuant to the provisions of Decree No.  246 of 2004. During the first few years of the review 
period, fiscal policy was targeted on achieving a primary surplus; but since 2014 it has b een steered 
towards maintaining a balanced budget, endeavouring to boost revenue by reducing inefficiencies 
and by waging a sustained battle against tax evasion. To that end, measures were introduced to 
technologically modernize tax administration and stre ngthen the National Tax and Customs 
Directorate (DIAN), to enable it to exercise more effective control. In addition, tax evasion, in respect 
of both income tax and VAT, has been made a criminal offence punishable by up to nine years in 
prison.  
1.15.   The primary  balance has been deteriorating during the period under review, moving from 
positive in 2012 to zero in 2013 and then turning negative as from 2014. At the same time, the 
central government deficit increased from 2.3 % of GDP in 2012 to 4 % in 2016. This was  the result 
of both an increase in spending relative to GDP and a fall in income, particularly tax revenue. 
Expenditure grew from 18 % of GDP in 2012 to 19.2 % in 2014, before measures were adopted to 
rein it in; in 2017, expenditure represented 19.4 % of GDP. Total revenue fell from 16.1 % of GDP in 
2012 to 14.9 % in 2016, before rebounding to 15.8 % in the following year (Table 1.2). Colombian 
market analysts estimate a deficit of around 3.7 % of GDP in 2017.14 The Ministry of Finance, 
meanwhile, is projec ting a deficit of 3.6 %, which it considers consistent with the level determined 
by the Fiscal Rule Law (see below), since it meets the stated goal of a structural deficit of 2.0 % of 
GDP for 2017 (the permitted cyclical balance is -1.7% of GDP). The estimat ed deficit for that year 
is below the 2.2 % of GDP recorded at end -2016. The Ministry of Finance estimates revenue 
equivalent to 15.3 % of GDP and expenditure of 19.0 %.15 A central government deficit of 3.1 % of 
GDP is projected for 2018, along with the start of convergence towards the structural deficit specified 
by the Law .16 
Table 1.2 Central government finances, 2012 -2017  
(% of current GDP)   
2012  2013  2014  2015  2016  2017  
1. Total income  16.1 16.9 16.6 16.2 14.9 15.8 
Current national revenue  14.5 14.3 14.4 14.6 13.7 14.0 
 Tax revenues  14.3 14.2 14.3 14.6 13.6 13.9 
DIAN administered, internal  10.2 9.6 8.5 8.3 8.0 13.9 
 Revenue  6.6 6.3 5.0 4.8 4.7 5.8 
 Domestic VAT  3.7 3.3 3.5 3.5 3.3 3.9 
DIAN administered, external  2.3 2.1 2.2 2.3 2.0 2.1 
 Foreign VAT  1.8 1.6 1.6 1.7 1.6 1.7 
 Tariff 0.5 0.5 0.5 0.6 0.5 0.4 
Domestic tax on fuels  0.0 0.4 0.4 0.4 0.4 0.2 
 Consumption  0.0 0.2 0.2 0.2 0.2 0.2 
 Corporate surtax for equality (CREE)  0.0 0.4 1.6 1.7 1.6 0.5 
 Surtax on gasoline and ACPM (diesel)  0.3 0.0 0.0 0.0 0.0 0.0 
 Tax on financial movements  0.8 0.8 0.9 0.8 0.8 0.7 
 Contribution to democracy (heritage) / wealth tax  0.6 0.6 0.5 0.7 0.5 0.4 
Non-tax revenues  0.2 0.1 0.1 0.1 0.1 0.6 
 Remainder  0.2 0.1 0.1 0.1 0.1 0.0 
Special funds  0.2 0.2 0.2 0.2 0.2 0.2 
Other capital resources  1.4 2.4 2.0 1.3 1.0 1.1 
 Total financial returns  0.2 0.1 0.1 0.2 0.4 0.4 
 Financial surpluses  1.2 2.0 1.6 0.7 0.2 0.2 
  Ecopetrol  1.1 1.9 1.4 0.5 0.1 0.1 
  Other firms  0.0 0.1 0.1 0.1 0.0 0.1 
                                                
13 Idem. 
14 BRC (2017), Informe sobre Inflación , September  2017. Viewed at: 
http://www.banrep.gov.co/sites/default/files/publicaciones/a rchivos/informe_sobre_inflacion_septiembre_2017
.pdf. 
15 Ministry of Finance (2017), Marco Fiscal de Mediano Plazo 2017 , p. 122. Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=latestreleased . 
16 Idem.  WT/TPR/S/372/Rev.1 • Colombia  
 
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2012  2013  2014  2015  2016  2017  
 Other resources  0.0 0.3 0.3 0.4 0.4 0.5 
  Refunds and unallocated funds  0.1 0.1 0.1 0.0 0.4 0.2 
  Rest 0.0 0.2 0.1 0.3 0.0 0.2 
2. Total payments  18.4 19.2 19.1 19.2 18.9 19.4 
Total payments without interest  15.9 16.9 16.8 16.6 16.0 16.5 
Current national payments  15.5 15.9 16.1 16.1 16.9 17.2 
 Interest  2.4 2.2 2.1 2.2 2.5 2.6 
On external debt  0.5 0.5 0.5 0.7 0.7 0.7 
On domestic debt  1.9 1.7 1.5 1.5 1.8 1.9 
 Operating expenses  12.9 13.6 13.9 13.5 14.0 14.6 
  Personal services  2.1 2.1 2.3 2.3 2.3 2.3 
 Transfers  10.0 10.6 10.8 10.5 10.9 11.6 
 Regional revenue sharing transfers (SGP since 2002)  3.9 4.0 3.8 3.7 3.7 3.9 
 Pensions  3.6 3.4 3.7 3.5 3.4 4.0 
 Other  2.5 3.2 3.3 3.3 3.8 3.7 
  Overheads and other expenditure  0.8 0.9 0.8 0.8 0.7 0.7 
Investment  3.0 3.3 3.0 3.1 2.0 1.9 
3. Cash deficit or surplus  -1.9 -2.1 -2.5 -2.9 -3.8 n.a. 
 Accrued income  0.0 0.0 0.0 0.0 0.0 0.0 
 Accrued expenditure  0.1 0.1 0.2 0.4 0.4 0.3 
Floating debt  0.3 0.1 -0.3 -0.3 -0.2 n.a. 
4. Total deficit or surplus  -2.3 -2.3 -2.4 -3.0 -4.0 -3.65 
5. Costs of financial restructuring  0.0 0.0 0.0 0.0 0.0 0.0 
6. Deficit to be financed  -2.3 -2.4 -2.4 -3.0 -4.0 3.65 
Primary balance  0.2 0.0 -0.2 -0.5 -1.1 -0.7 
Memorandum items        
Central government gross domestic debta  25.7 27.6 28.7 29.1 30.8 31.8 
Central government gross domestic and external financial 
debt  34.6 37.2 40.6 45.3 46.5 47.4 
Gross domestic debt, non -financial public sector  30.2 32.0 32.9 33.3 34.7 34.9 
Net domestic debt, non -financial public sectorb 22.2 23.5 24.8 24.0 26.0 26.1 
Gross external debt, non -financial public sector  10.6 11.2 13.7 18.2 17.7 17.9 
Net external debt, non -financial public sectorc 9.8 10.1 12.0 15.9 15.1 15.3 
a Including promissory notes and other accounts payable on domestic debt.  
b Gross domestic debt of the non -financial public sector (NFPS) less remaining NFPS debt owed to the 
Central Government; central government promissory notes; Fogafín capitalization bonds held by the 
NFPS; bonds held by the Social Security Institute (ISS); bonds held by Ecopetrol, by Cajanal, and by 
the rest of the NFPS; and Carbocol bonds held by the Central Government and Ecopetrol.  
c Gross external debt of the NFPS less Treasury assets, assets of the Oil Savings and Stabilization 
Fund (FAEP), and those of decentralized entities.  
n.a. Not available.  
Source:  Ministry of Finance and Public Credit; and information provided by the Colombian authorities.  
1.16.   Foreign trade taxes represented 2 % of GDP in 2016, of which 1.6 percentage points were 
generated by VAT and just 0.5 of a point came from tariffs. These taxes represented 8.7 % of the 
total value of merchandise imports in 2016, with VAT representing 6.9 %, and tariffs equivalent 
to 1.8%. 
1.17.   The reduction in tax revenues caused by the fall in the oil price, compounded by insufficient 
revenue collection, has led the Government to introduce a tax reform largely aimed at improving 
the tax collection process and reducing inefficiencies. Correct manag ement of public finances 
continues to be seen as crucial for macroeconomic stability.  
1.18.   Under Law No.  1473, Colombia has been applying a Fiscal Rule since 2011 that seeks to 
tighten fiscal discipline, so as to reduce the burden of public debt and thus make i t easier to 
implement countercyclical fiscal policies when necessary. The Law requires adherence to a structural 
deficit target, which is set as the fiscal policy objective. The Fiscal Rule targets a deficit below 
1% of GDP as from 2022; and it permits the  application of a countercyclical policy when the expected 
GDP growth rate is at least two percentage points below the long -term rate. The Government is 
required to submit an annual report on the central government (GNC) structural deficit to the 
Economic Commissions of the Congress of the Republic.17 As noted above, the 2016  Fiscal Rule 
                                                
17 The structural deficit is defined as the difference between structural in come and structural 
expenditure observed at the fiscal year -end. Structural income is determi ned by deducting from total 
GNC income the portion that is explained by the tax and energy cycles, while structural expenditure is the 
same as total spending in th e absence of any countercyclical spending programmes explicitly allowed by the WT/TPR/S/372/Rev.1 • Colombia  
 
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  Compliance Report, issued in June  2017, found the structural balance recorded in 2016 to be 
compliant with the Fiscal Rule.18 
1.19.   The principle of fiscal sustainability was also enshrined in the Constitution through the 
amendments introduced in 2011. In that year, Colombia embarked on a process of tariff reduction, 
in which the Structural Tariff Reform (REA) lowered the average tariff by 50 %. The aim of the REA 
was to overcome neg ative rates of effective protection and the high level of tariff dispersion, which 
were eroding national competitiveness and undermining exports. The REA was the subject of a 
number of amendments in 2012, 2013 and 2015 (Section  3.1.3.1). As a result of the  tariff cuts, 
nearly half of all tariff lines are now zero -rated; and duties on capital goods and inputs not produced 
in Colombia are also generally zero (Section  3.1.3.1).  
1.20.   To measure compliance with their fiscal policy objectives, the authorities prepare the 
Medium -Term Fiscal Framework (MFMP) each year, which highlights the results and aims of fiscal 
policy. The document provides a general description of the most salient features of Colombia's 
economic behaviour and fiscal activity in the previous year, a long with estimates for the year under 
review and for the following ten. The MFMP assesses the consistency of the budget figures with the 
primary -surplus and public -debt targets and also with the macroeconomic forecasts generally.19 
1.21.   In 2016, Colombia embark ed upon a wide -ranging structural tax reform under Law  No. 1.819 
of 29  December  2016. This legislation redefined corporate taxation, with the aim of gradually 
converging towards a lower rate (33 %). It also sought to redefine the tax base to reduce possibil ities 
for tax evasion and enhance revenue collection. The most commo n VAT rate was also raised 
(Box 1.1). 
Box 1.1 The 2017 structural tax reform  
In late 2016, Colombia introduced a tax reform law that contains a series of measures to improve revenue 
collection (Law No.  1.819 of 2016, Official Journal No.  50.101 of 29  December  2016, adopting a structural tax 
reform, stronger mechanisms to combat tax evasion and avoidance, and other provisions).  
The Law clarified  issues surrounding personal income -tax assessment and the concepts of non -taxable 
income; and it set limits on deductions. In addition, new tax rates were set for the net labour income and 
pensions received by natural persons, as follows: 0% on income up to 1,090  UVTsa; 19% on income between 
1,090 UVTs and 1,700  UVTs; 28% between 1,700 UVTs and 4,100 UVTs and 33% thereafter. Limits were also 
set for net non -labour and capital income, as follows: 0% up to 600 UVTs; 10% between 600  UVTs and 1,000 
UVTs; 20% b etween 1,000  UVTs and 2,000 UVTs; 30% between 2,000 UVTs and 3,000  UVTs; 33% between 
3,000 UVTs and 4,000  UVTs; and 35% thereafter. The Law also established a single rate of 35% on the taxable 
income obtained from national sources, by natural persons not r esident in Colombia. The same rate is 
applicable to inheritances received by non -resident individuals.  
The Law also provided for the gradual lowering of profits tax to 33% by 2019. In 2017, the rate was 34%, 
and a surtax of 6% was also levied on firms wit h profits above 800,000 UVTs. The surtax for 2018 is set at 
4%. Income obtained by State-owned industrial and commercial enterprises and by semi -public firms at the 
departmental, municipal and district levels, in which the State's holding is greater than 9 0% and which hold 
the monopolies on games of chance and gambling and on spirits  and alcoholic beverages , will be taxed at a 
rate of 9%.  
As from 1  January  2017, the rate of income tax and additional taxes for legal entities that are free -zone users 
is 20%.  Similarly, cooperatives, along with their associations, unions, central leagues, higher -level financial 
organizations, mutual associations, cooperative support institutions, and cooperative confederations, come 
under the Special Tax Regime and are taxed o n their net profit or surplus at a special flat rate of 20%.  
                                                
Fiscal Rule. The cyclical component of tax revenue is determined by using the output gap, which is the 
percentage difference between actual and potential GDP. The energy cycle i s calculated by multiplying marginal 
energy revenue (additional income per dollar increase in the price of national crude oil relative to its long -term 
level) by the difference between the observed price and long -term price, and the average observed exchan ge 
rate. Ministry of Finance and Public Credit, Directorate -General of Macroeconomic Policy (2017), Informe de 
Cumplimiento de la Regla Fiscal en 2016 , June  2017. Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
073994%2F%2FidcPrimaryFile&revision=latestreleased . 
18 Idem.  
19 Online information  from the Ministry of Finance. V iewed at: http://www.minhacienda.gov.co . WT/TPR/S/372/Rev.1 • Colombia  
 
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  In addition to the change made to direct taxes, the tax reform also altered a number of indirect taxes. Law 
No. 1,819 raised the general VAT rate from 16% to 19% as from 1  February  2017.  
Law No . 1.819 also introduced tax incentives for entities investing in projects classified as research, 
technological development or innovation by the National Council for Tax Benefits for Science, Technology and 
Innovation, in accordance with the criteria and c onditions defined by the National Economic and Social Policy 
Council (CONPES) in updating CONPES Document 3834 of 2015. The benefit consists of the right to deduct 
25% of the amount invested in such projects from the income tax assessed in the fiscal year in which the 
investment was made.  
As a complement to the Structural Tax Reform Law, Law No.  1.816 of 19  December  2016 introduced a change 
in the regime governing excise tax on spirits, wines, aperitifs and the like. The new structure of excise tax has 
two elements: (a) a specific flat -rate component of Col$220 per degree of alcohol; and (b) an ad valorem  
component of 25% on the retail price before excise tax. The tax base of the ad valorem  component is 
calculated and established each year by the National A dministrative Department of Statistics (DANE), taking 
into account the prices at which each alcoholic beverage is sold in the market.  
Law No.  1.819 of 2016 raised the specific component of the tax on cigarettes and tobacco to Col$1,400 per 
pack of 20 ciga rettes and to Col$90 per gram of rolling tobacco or snuff for 2017 (Col$2,100 and Col$167, 
respectively, for 2018). The ad valorem  component is set at 10% of the retail price certified every six  months 
by the DANE for cigarettes and 10% of the amount of ex cise tax per gram of rolling tobacco.  
a The tax unit ( Unidad de Valor Tributario  (UVT)) is used to calculate the taxes to be declared and paid 
by natural and legal persons. In 2017, it was set at Col$31,859.  
Source:  WTO Secretariat.  
1.22.   The Ministry of Financ e estimated that implementation of the structural tax reform would 
boost tax revenue by the equivalent of 0.6 % of GDP in 2017.20 The IMF estimates that the tax reform 
will boost GDP growth by around 0.3 % per year if accompanied by an increase in public inve stment. 
The combination of a lower corporate tax rate and extra public investment is expected to have a 
positive effect on private investment.21 
1.23.   Non-financial public sector (NFPS) debt increased from 32.1 % of GDP in 2012 to 41 % in 2016.  
1.2.3   Monetary and exchang e-rate policy  
1.24.   Monetary and exchange -rate policies in Colombia are formulated and implemented by the 
Central Bank (Banco de la República de Colombia (BRC)). Colombia maintains an inflation -targeting 
system, which aims to maintain a low and stable rate of in flation and achieve GDP growth close to 
its long -term potential.  
1.25.   To fulfil its mandate, the BRC Board of Directors sets quantitative inflation targets for the 
annual variation in the consumer price index (CPI) published by the DANE. The Central Bank 
implements monetary policy by altering its intervention interest rates (monetary -policy and 
open-market operations (OMO) rates).22 The intervention rates are the key monetary -policy tool 
whereby the Central Bank influences market interest rates. Another imp ortant monetary instrument 
is the buying and selling of foreign currency on the foreign -exchange market.  
                                                
20 Ministry of Finance (2017), Marco Fiscal de Mediano Plazo 2017 , p. 122. Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=latestreleased . 
21 IMF (2017), IM F Country Report No.  17/138, Colombia 2017 Article IV Consultation -Press Release; 
Staff Report; and Statement by the Executive Director for Colombia. Viewed at: 
http://www.i mf.org/~/media/Files/Publications/CR/2017/cr17138.ashx . 
22 The key monetary -policy mechanism used to influence the amount of money in circulation consists of 
altering the minimum interest rate (expansion rate) that the BCR charges when it lends to financial  institutions, 
or the maximum interest rate it pays on surplus funds accepted from them. These "open -market operations" 
(OMO), are made at very short maturities (1, 7 and 14 days). The monetary -policy intervention rate is the 
minimum rate on one -day moneta ry expansion auctions. There is also a maximum expansion rate.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  1.26.   The Board sets the quantitative inflation target and takes policy actions aimed at achieving 
the target and keeping inflation around 3 % in the long run .23 A tolerance of +/ - one percentage 
point is allowed, which implies a target band for inflation of between 2 % and 4 %. For 2017, 
the Board agreed that the inflation target would be the same as the long -term target.  
1.27.   During the first part of the period under  review, the BRC maintained an expansionary 
monetary stance, which meant lowering the intervention interest rate by about 200 basis points to 
3.25% between 2012 and late April  2014. Thereafter, the Central Bank hiked the intervention rate 
several times by a total of about 450 basis points, bringing the rate to a peak of 7.75 % in 
August  2016. In recent months, however, the monetary policy stance has shifted; and an 
expansionary policy of periodic cuts in the intervention rate has been applied since December  2016, 
which had brought the rate down to 4.75 % by late November  2017 – a 300  basis-point reduction in 
less than a year.24 
1.28.   Inflation, measured by the variation in the CPI, stayed within the expansion range set in the 
period 2012 and 2014; but it gathered pace at the end of that year and exceeded the target by 
between 2 % and 4 % in 2015 and 2016. At the end of the latter year, inflation stood at 5.75 %, lower 
than the previous year's figure but still above the target range set by the BRC. In 2017, inflation 
recorded its lowest recent level in July (3.4 %), before rising to post an a nnual rate of 4.1 % in 
December. For 2018, the Central Bank is forecasting inflation of between 3 % and 4 %.25 
1.29.   Colombia has been operating a floating exchange -rate regime since September  1999. 
Exchange -rate flexibility is considered crucial for keeping inflati on low and stable, and for preserving 
both financial and payment -system stability. This is because flexibility enables the exchange rate to 
operate as an adjustment variable in the face of economic shocks, by smoothing the volatility of 
economic activity; and it also allows the interest rate to be used as a tool for steering both inflation 
and output towards their desired levels. Nonetheless, as the country's foreign -exchange authority, 
the Central Bank can intervene on the foreign -exchange market to: (i)  increase the level of 
international reserves to reduce external vulnerability and improve conditions of access to external 
credit; (ii) mitigate exchange -rate movements that do not clearly reflect economic fundamentals 
and could stoke inflation and impair e conomic activity; and (iii)  moderate rapid and sustained 
deviations of the exchange rate from trend in order to avoid erratic movements on the financial 
markets. To keep foreign -exchange intervention compatible with the inflation -targeting strategy, 
foreig n currency purchases and sales are sterilized as necessary to stabilize the short -term interest 
rate at the level considered by the BRC Board as consistent with achieving the inflation targets.26 
1.30.   During the entire period under review, and partly owing to th e fall in oil prices, the 
Colombian  peso depreciated in real terms by almost 30 %; and, between 2012 and 2015, there was 
a steep real depreciation of nearly 50 %, which was then followed by a real appreciation and a  spell 
of stability.  
1.2.4   Balance of payments  
1.31.   Colombia's current -account balance has traditionally been in deficit, mainly owing to net 
outflows on the service and income accounts. The income deficit is partly due to remittances abroad 
in respect of royalties and other payments related to the mining -energy sector. The current -account 
deficit widened substantially between 2012 and 2015, from 3 % to 6.4 % of GDP, before retreating 
to 4.3 % of GDP in 2016 and then to 3.3 % in 2017 (Table 1.3).  
                                                
23 BRC (2017), Informe sobre Inflación , September  2017. Viewed at: 
http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/informe_sobre_inflacion_septiembre_2017
.pdf; and Informe sobre Inflación , December  2017.  Viewed at: 
http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/informe_sobre_inflacion_diciembre_2017.
pdf. 
24 BRC, Monetary policy intervention rate. Dates on which the alteration takes effect. Daily historical 
series. Viewed at: http://obieebr.banrep.gov.co/analytics . 
25 BRC (2017), Informe sobre Inflación , December  2017. Viewed at: 
http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/informe_sobre_inflacion_diciembre_2017.
pdf. 
26 BCR, Política de Intervención Cambiaria . Viewed at: http://www.banrep.gov.co/es/politica -
intervencion -cambiaria . WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 1.3 Balance of payments, 2011 -2017  
(US$ million at current prices)   
2011  2012  2013  2014  2015  2016  2017a 
Current account balance (% of GDP)  -2.7 -3.0 -3.3 -5.2 6.4 4.3 3.3 
1 Current account  -9,802  -11,365  -12,504  -19,768  -18,586  -12,129  -10,359  
  Credit (exports)  72,758  77,853  76,936  73,824  56,725  53,448  60,833  
  Debit (imports)  82,561  89,219  89,440  93,592  75,311  65,577  71,192  
  1.A Goods and services  641 -1,186  -3,160  -11,862  -18,255  -12,767  -8,878  
  Credit (exports)  63,906  68,049  67,305  64,055  45,998  41,756  47,801  
  Debit (imports)  63,265  69,235  70,465  75,917  64,253  54,523  56,679  
  1.A.a Goods  6,137  4,956  3,179  -4,641  -13,479  -9,160  -4,766  
  Credit (exports, f.o.b.)  58,262  61,604  60,282  56,899  38,572  34,079  39,474  
  Debit (imports, f.o.b.)  52,126  56,648  57,103  61,539  52,051  43,239  44,241  
  1.A.b Services  -5,496  -6,141  -6,340  -7,222  -4,776  -3,608  -4,111  
  Credit (exports)  5,643  6,445  7,022  7,156  7,426  7,677  8,326  
  Debit (imports)  11,139  12,586  13,362  14,378  12,203  11,284  12,438  
  1.B Primary income (Factor income)  -15,494  -15,013  -14,230  -12,527  -5,761  -5,249  -8,167  
  Credit  2,778  3,851  3,624  3,997  4,483  4,996  5,475  
  Debit  18,272  18,863  17,855  16,525  10,244  10,245  13,641  
  1.C Secondary income (Current 
transfers)  5,051  4,833  4,887  4,622  5,430  5,887  6,685  
  Credit  6,075  5,954  6,007  5,771  6,243  6,696  7,558  
  Debit  1,024  1,121  1,120  1,150  814 808 873 
3 Financial account  -8,707  -11,552  -11,739  -19,292  -18,263  -12,682  -9,694  
  3.1 Direct investment  -6,227  -15,646  -8,557  -12,268  -7,518  -9,332  -10,828  
Net acquisition of financial assets  8,420  -606 7,652  3,899  4,218  4,517  3,690  
3.1.1 Equity and investment fund 
shares  7,254  -557 7,468  2,935  5,283  4,975  3,386  
 3.1.2 Debt securities  1,165  -49 184 963 -1,065  -458 304 
 Net liabilities incurred  14,647  15,039  16,209  16,167  11,736  13,849  14,518  
3.1.1 Equity and investment fund 
shares  12,775  13,800  13,841  13,674  9,730  9,174  12,270  
3.1.2 Debt securities  1,872  1,239  2,368  2,493  2,006  4,675  2,248  
 3.2 Portfolio investment  -6,171  -4,769  -7,438  -11,565  -10,283  -3,718  -1,577  
 Net acquisition of financial assets  1,361  2,586  3,635  7,096  -475 5,190  6,217  
3.2.1 Equity and investment fund 
shares         
3.2.2 Debt securities  1,361  2,586  3,635  7,096  -475 5,190  6,217  
 Net liabilities incurred  7,532  7,356  11,073  18,661  9,808  8,908  7,793  
3.2.1 Equity and investment funds 
shares  2,272  3,455  1,921  1,823  1,757  -1,484  245 
3.2.2 Debt securities  5,260  3,901  9,152  16,838  8,051  10,392  7,548  
 3.3 Financial derivatives (other than 
reserves) and employee stock options  36 -514 118 608 1,956  -621 203 
 Net acquisition of financial assets  -130 -581 -74 -323 -223 -794 -210 
 Net liabilities incurred  -166 -67 -192 -932 -2,179  -173 -413 
 3.4 Other investment  -88 3,971  -2,808  -504 -2,833  823 1,963  
 Net acquisition of financial assets  3,597  1,736  2,286  1,771  540 2,479  -241 
 Net liabilities incurred  3,685  -2,235  5,094  2,275  3,373  1,656  -2,204  
  3.5 Reserve assets  3,742  5,406  6,946  4,437  415 165 545 
Errors and omissions, net  1,095  -187 765 476 323 -553 665 
Memorandum item:  
Financial account, excluding reserve 
assets  -12,449  -16,958  -18,685  -23,729  -18,678  -12,848  -10,239  
a Preliminary figures.  
Source:  BRC, Economic Studies Division, Technical and Economic Information Department, External Sector.  
1.32.   The merchandise trade balance was in surplus in 2012 and 2013, before slipping into deficit 
largely because of lower oil prices. The deficit peaked at US$13,479  million in 2015 and then began 
to decline, as  imports fell more steeply than exports in 2016, and export growth of 16 % outweighed 
a 2.3% increase in imports in 2017.27 The increase in export value partly reflected the higher prices 
of the main commodities, especially oil and coal. Colombia's services trade was in deficit throughout 
the period under review, reflecting large negative balances in the transport, business, construction, 
and financial services accounts.  
1.33.   Outflows abroad in respect of profits and dividends dwindled during the review period, 
dropping from more than US$15  billion in 2012, to just over US$5  billion in 2016, largely owing to 
the reduction in the profits of firms operating in the mining -energy sector. Outflows in this category 
totalled US$8,167  million in 2017. Current transfers, wh ich are mainly workers' remittances from 
                                                
27 BCR (2018), Evolución de la Balanza de Pagos y Posición de Inversión Internacional Enero - Diciembre 
2017. Viewed at: http://www.banrep.gov.co/sites/default/files/ibp_ene_dic_2017.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  abroad, remain one of the main sources of income on the current account, exceeding US$5.8  billion 
in 2016 and growing to nearly US$6.7  billion in 2017.  
1.34.   Net flows of direct investment dropped substantially during the  period under review, although 
they fluctuated considerably from year to year. The variation in investment flows also largely reflects 
lower oil prices.  
1.35.   The foreign debt/GDP ratio increased during the period, partly because of the real depreciation 
of the peso. Nonetheless, the levels remain low: the net NFPS external debt represented 15.1 % of 
GDP in 2016.  
1.36.   Colombia's gross international reserves totalled US$46,682  million in 2016, equivalent to 
10.3 months' imports of goods and services.  
1.37.   The 2016 results re flected an adjustment in the current -account deficit of about 
US$6,239  million, equivalent to 2.0 percentage points of GDP. The authorities accordingly estimated 
a current -account deficit of about US$11.5  billion for 2017, equivalent to 3.6 % or 3.7 % of GDP. The 
merchandise trade balance was expected to remain in deficit in 2017, albeit to a lesser degree than 
in 2016 thanks to an improvement in the terms of trade. Preliminary figures point to a gap of 
US$10,359  million (3.3 % of GDP) in 2017; and a cu rrent-account deficit of 3.6 % of GDP is projected 
for 2018. Nonetheless, the merchandise trade gap is expected to widen, largely because of an 
increase in imports, with exports growing only moderately.28 
1.3  Trade and investment performance  
1.3.1   Trends and patterns of trade in goods and services  
1.3.1.1   Merchandise trade29 
1.38.   Since 2012, foreign trade flows have dwindled in Colombia (Tables A1.1 and A1.2). 
Merchandise exports fell by 37 % between 2012 and 2017, to total US$38.8  billion in the latter year. 
While the decline has be en gradual since 2012, it has gathered pace since 2014 and is explained by 
lower international commodity prices, especially in the case of mineral products (oil and coal), which 
are Colombia's main export products (Table A1.1 and Chart  1.1), compounded by weaker global 
demand. Although the real exchange rate rose sharply, as noted above, Colombia did not gain 
relative to other countries in the region which also devalued and export mainly to developed 
economies. Moreover, the real depreciation of the peso in flated production costs, since the import 
component of exports has been increasing, especially in the manufacturing sector.  
1.3.1.1.1   Composition of merchandise trade  
1.39.   Products of the mining sector represented around 54 % of Colombian exports in 2017, 
compared to near ly 66% in 2012 (Table A1.1 and Chart 1.1). Crude oil and coal account for the bulk 
of mining exports and the fall in their price explains their declining share of total exports.  
1.40.   Agriculture has increased its share of Colombian exports from 11 % in 2012 to 2 0.7% in 2017, 
driven by coffee, flowers and bananas. Since 2012, coffee has consolidated its status as the leading 
agricultural export, representing 8 % of total export value in 2016. Chemical products and plastics 
are Colombia's main manufactured exports ( Chart 1.1).  
1.41.   The manufacturing sector generated about a quarter of Colombia's exports in 2017, compared 
to 17.5 % in 2012 (Table A1.1). Chemical products remain the leading manufactured export.  
1.42.   Colombia continues to import mainly manufactures, which accounte d for over 80 % of the 
total in 2017 (Table A1.2), led by machinery (22.7 % of total imports in 2017), transport equipment 
                                                
28 Ministry of Finance (2017), Marco Fiscal de Mediano Plazo 2017 , p. 122. Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=late streleased . 
29 This section uses data from the United Nations Comtrade database, which may differ from the figures 
presented in the balance of payments.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  (10.4 %) and chemical products (16.4 %). Agricultural products represented 13.1 % of total imports 
in 2017 (Table A1.2). Between 2012 and 2017, the value of imports fell by 20.7 % (Table A1.2), 
which the authorities attributed to the slowdown in the Colombian economy resulting from the loss 
of national income, which undermined aggregate demand and, hence, the demand for imports. 
Moreover, the  effect of the real depreciation of the peso increased the relative prices of imported 
goods.  
1.3.1.1.2   Direction of merchandise trade  
1.43.   Colombia's foreign trade remains quite concentrated geographically and still depends heavily 
on the United States market (Tables A1 .3 and A1.4). The latter is still the leading destination for 
Colombian exports, absorbing 29.1 % of the total in 2017; and it is also the source of a large 
proportion of Colombia's imports (26.3 % of the total, Chart 1.2). The next most important markets 
are China (with a significantly larger share since  the last review), the European  Union and Mexico. 
Colombia's trade with the other countries of the Andean Community represented 7.5 % of the total 
in the case of exports, and 3.8 % in the case of imports.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Chart 1.1 Merchandise trade by main products, 2012 and 2017  
 
Source:  WTO Secretariat estimates based on data from the UNSD Comtrade database; and information 
provided by the authorities for 2017.  
1.3.1.2   Services tra de 
1.44.   During the period under review, Colombia continued to run a deficit in its services trade, 
owing to a large shortfall in transport, business, insurance and pension, and financial services 
(Table  1.4). Nonetheless, having widened until 2014, the deficit narrowed from 2015 onwards, and 
the trend consolidated in the ensuing years. This was partly because the transport services deficit 
decreased during the period, in the wake of weaker growth in merchandise trade, particularly 
2012 2017
(a)    Exports
Total: US$60,274  millon
(b)    Imports
Total: US$58,088 millon Total: US$46,076 millonTotal: US$37,800 millonMineral 
products
65.8%Other
9.0%
Natural 
pearls, 
precious 
metals
6.1%Other
11.3%
Mineral 
products
10.1%Mineral 
products
54.3%Plastics
3.8%
Food industry 
products
3.8%
Chemicals
13.7%
Plastics
6.1%Electrical 
machinery 
and 
apparatus
23.4%Other
12.1%
Mineral 
products
8.6%
Chemicals
16.4%
Plastics
6.6%
Base metals
7.4%Electrical 
machinery 
and 
apparatus
22.7%Other
13.3%
Base metals
7.9%Textiles
4.0%Food industry 
products
5.4%
Textiles
4.1%Vegetable 
products
7.0%Vegetable 
products
13.7%Food industry 
products
2.5%
Food industry 
products
3.4%
Chemicals
5.0%Chemicals
3.5%Plastics
2.8%Base metals
3.1%Base metals
3.3%
Transport 
equipment
14.1%Transport 
equipment
10.4%Natural pearls, 
precious metals
5.3%
Vegetable 
products
5.1%Vegetable 
products
4.8%WT/TPR/S/372/Rev.1 • Colombia  
 
- 28 - 
 
  hydrocarbon exports. The balanc e of the travel item also remained negative until 2015 but posted 
surpluses in 2016 and 2017. Trade in information and communications technology services continued 
negative for Colombia. In general, income from services trended upwards during the review pe riod, 
while expenditures contracted until 2016.  
Chart 1.2 Direction of merchandise trade, 2012 and 2017  
 
Source:  WTO Secretariat estimates based on data from the UNSD Comtrade database ; and information 
provided by the authorities for 2017.  
2012 2017
(a)    Exports
Total: US$60,274 millon
(b)    Imports
Total: US$58,088 millon Total: US$46,076 millonTotal: US$37,800 millonEcuador
3.2%Other
2.5%
United 
States
36.9%
Peru
2.9%Other 
America
17.5%
Brazil
2.1%
Mexico
11.0%America
65.8%United 
States
29.1%
Other 
America
15.0%Brazil
3.6%Other
3.5%
Asia
11.0%
America
68.5%Asia
11.2%
United 
States
24.3%
Other 
America
12.7%Canada
1.9%
Ecuador
1.8%Japan
2.8%
China
16.5%Other 
Asia
7.6%Other
2.6%
United 
States
26.3%
Mexico
7.5%
Other 
America
7.1%Ecuador
1.6%Canada
1.7%China
19.0%Other 
Asia
8.4%Other
4.5%
America
56.6%America
49.0%
Europe
13.8%
Europe
16.4%Asia
27.0%Asia
30.1%Japan
2.7%Europe
17.7%Europe
19.7%
Peru
2.6%Ecuador
3.9%
Brazil
4.8%Panama
4.8%Panama
7.2%
Brazil
5.0%Mexico
1.4%Mexico
4.1%EU (28)
15.2%Other Europe
2.5%China
5.5%Other 
Asia
5.7%
EU (28)
14.9%Other Europe
4.8%China
5.3%Other 
Asia
5.7%WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 1.4 Trade in services, 2012 -2017  
(US$ million)   
2012  2013  2014  2015a 2016a 2017a 
Balance        
Services  -6,141  -6,340  -7,222  -4,776  -3,608  -4,111  
Manufacturing services on physical inputs owned by 
others  -5 -1 -3 -2 -1 -3 
Maintenance and repairs n.i.e.  19 37 4 12 -2 -11 
Transport  -2,096  -1,442  -1,572  -1,256  -1,094  -1,117  
Travel  -166 -330 -858 -76 306 417 
Building  -4 -2 -2 -1 0 -1 
Insurance and pension services  -1,142  -1,143  -1,164  -863 -927 -981 
Financial services  -642 -686 -810 -692 -464 -1,047  
Charges for the use of intellectual property n.i.e.  -437 -494 -470 -419 -392 -394 
Telecommunications, computer and information 
services  -116 -372 -391 -373 -383 -383 
Other business services  -1,502  -1,907  -1,897  -1,056  -668 -642 
Personal, cultural and recreational services  -14 33 -21 -20 24 35 
Government goods and services, n.i.e.  -37 -32 -38 -32 -6 14 
Exports        
Services  6,445  7,022  7,156  7,426  7,677  8,326  
Maintenance and repairs n.i.e.  40 51 23 24 10 1 
Transport  1,491  1,714  1,766  1,601  1,509  1,632  
Travel  3,460  3,611  3,825  4,245  4,559  4,900  
Building  N/A N/A N/A N/A N/A N/A 
Insurance and pension services  16 16 14 19 23 17 
Financial services  74 77 70 57 48 82 
Charges for the use of intellectual property n.i.e.  90 66 56 52 46 63 
Telecommunications, computer and information 
services  352 323 275 346 325 343 
Other business services  743 896 954 886 890 1,014  
Personal, cultural and recreational services  85 181 83 103 130 119 
Government goods and services, n.i.e.  95 87 88 92 136 156 
Imports        
Services  12,586  13,362  14,378  12,203  11,284  12,438  
Manufacturing services on physical inputs owned by 
others  5 1 3 2 1 3 
Maintenance and repairs n.i.e. 22 14 19 12 12 11 
Transport  3,587  3,155  3,339  2,857  2,604  2,749  
Travel  3,626  3,941  4,683  4,321  4,254  4,483  
Building  4 2 2 1 0 1 
Insurance and pension services  1,158  1,159  1,178  882 950 998 
Financial services  716 764 881 748 512 1,129  
Charges for the use of intellectual property n.i.e.  527 561 526 471 439 457 
Telecommunications, computer and information 
services  468 695 666 719 707 726 
Other business services  2,244  2,803  2,851  1,942  1,558  1,656  
Personal, cultural and recreational services  99 149 104 123 106 83 
Government goods and services, n.i.e.  132 119 126 124 142 142 
a Preliminary figures.  
N/A Not applicable.  
Source:  BRC. 
1.3.2   Trends and patterns in foreign direct investment  
1.45.   Annual flows of foreign direct investment (FDI) to Colombia fluctuated during the review 
period, trending upwards in 2012 -2014 before falling sharply in 2015 in the wake of lower oil prices. 
Although inward FDI flows recovered to US$13,726  million in 2016, they were still smaller than in 
2012.  
1.46.   For most of the perio d under review, the petroleum and mining sectors continued to be the 
main recipients of foreign investment, although flows have dwindled since 2015 (Table 1.5). Other 
sectors that receive foreign investment include manufacturing, commerce, restaurants and hotels, 
the financial sector and transport, storage and communications.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 1.5 Inward flows of foreign direct investment to Colombia by economic sector, 
2012 -2017 Q3  
(US$ million)  
 2012  2013  2014  2015  2016  2017 Q3a 
Total  15,039  16,210  16,165  11,632  13,743  10,202  
Agriculture, hunting, forestry and fishing  26 296 202 211 251 136 
Mining and quarrying (including coal)  2,474  2,977  1,582  533 -97 441 
Manufacturing  1,985  2,481  2,967  2,661  1,764  1,762  
Electricity, gas and water  672 314 463 274 3,599  427 
Construction  401 354 648 693 655 505 
Commerce, restaurants and hotels  1,339  1,361  804 1,668  1,044  751 
Transport, storage and communications  1,245  1,386  2,112  745 1,241  2,923  
Financial institutions  1,077  1,606  2,478  2,103  2,533  847 
Community services  349 324 177 229 368 298 
Petroleum  sector  5,471  5,112  4,732  2,514  2,385  2,113  
a Preliminary figures.  
Source:  BRC. 
1.47.   European Union countries jointly remain the leading source of foreign investment in Colombia 
(Table 1. 6). Other important investors are the United States, Panama and Switzerland.  
Table 1.6 Inward flows of foreign direct investment to Colombia by country of origin, 
2012 -2017Q3  
(US$ million)  
 2012  2013  2014  2015  2016a 2017Q3a 
Canada  291 258 437 319 2,195  125 
United States  2,476  2,838  2,237  2,078  2,108  1,408  
Bermuda  367 848 1,017  1,284  1,611  11 
Spain  628 884 2,214  1,327  1,486  2,215  
Panama  2,395  2,040  2,436  1,648  1,414  1,008  
Netherlands  -1,792  632 450 902 1,027  357 
United Kingdom  1,357  1,400  1,088  700 854 900 
Switzerland  698 2,096  2,804  947 740 496 
Mexico  849 556 663 -131 672 1,345  
Cayman Islands  507 603 318 224 299 486 
Barbados  345 418 527 238 247 255 
Germany  266 98 81 220 218 115 
France  303 532 224 174 197 157 
British Virgin Islands  487 459 349 192 163 153 
Ireland  25 4 -4 24 99 20 
Costa Rica  23 14 65 39 91 18 
Peru 159 74 265 73 85 67 
Ecuador  50 61 35 30 58 32 
China  35 9 35 3 57 16 
Venezuela (Bolivarian Rep. of)  111 88 115 85 56 31 
Other countries  5,457  2,296  807 1,258  66 987 
Total  15,039  16,209  16,164  11,632  13,743  10,202  
a Preliminary figures.  
Note:  A negative flow means that capital repayments outweigh new investment.  
Source:  BRC, Economic Studies Division.  
 WT/TPR/S/372/Rev.1 • Colombia  
 
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  2  TRADE AND INVESTMENT  REGIME  
2.1  General framework  
2.1.  Colombia's Political Constitution was promulgated in 1991 and has undergone a series of 
amendments, introduced through legislative acts of the National Congress.1 During the period under 
review, one of the main amendments was that prohibiting the re -election of the President of the 
Republic, which had been permitted since 2004.2 The duration of the presidential term of office 
(four years) remains unchanged. Another amendment concerned the com position of the two  houses 
of the Congress of the Republic, and it allows the candidates who in the vote count came immediately 
behind the persons declared President and Vice -President of the Republic to occupy a seat in the 
Senate and the House of Represe ntatives respectively.3 These changes will be implemented as of 
2018 when the next elections will take place.  
2.2.  There are three branches of government in Colombia: the executive, the legislative and the 
judicial branches, all with separate functions. The nat ional executive branch comprises the 
President  of the Republic, 16 ministers4 and the heads of eight administrative departments5, who 
make up the National Government. The President of the Republic is the Head of State and of the 
National Government. The na tional executive branch also includes ten supervisory authorities, 
35 public institutions, 37 special administrative units, 29 enterprises, eight State -owned industrial 
and commercial enterprises and seven special State agencies.6 The territorial executive branch 
comprises the governorships and mayoralties.  
2.3.  The legislative branch comprises the Congress of the Republic, which is made up of 
two chambers, the Senate and the House of Representatives, whose members are elected 
simultane ously for four -year, renewable terms. The Congress of the Republic comprises 
102 senators and 166 representatives.  
2.4.  The judicial branch comprises the Constitutional Court, the Supreme Court of Justice, the 
Council of State, the Judicial Discipline Commissio n, the Office of the Public Prosecutor, courts and 
judges.7 The authorities of indigenous territories may discharge jurisdictional functions, provided 
that they are not contrary to the Constitution and the laws of the Republic.  
2.5.  The Political Constitution is the supreme law of Colombia's legal system and is followed, in 
order of importance, by international treaties, laws (including laws approving international treaties), 
decrees (including single regulatory decrees), resolutions, circulars, departmental or dinances and 
municipal agreements.8 
2.6.  A draft law may be prepared by either of the two chambers of the Congress of the Republic, 
by the National Government, 5 % of the electorate and 30 % of the departmental deputies or 
municipal councillors. Some bodies of th e Judiciary, the National Electoral Council, the 
Attorney  General of the Nation and the Comptroller -General of the Republic may also prepare draft 
laws, but their powers are limited to fields within their remit. Draft laws are approved after being 
debated twice in each chamber of the Congress of the Republic (Chart 2.1). The legislative process 
ends when the President approves and enacts the law; he may voice objections if he deems the draft 
                                                
1 The Legislative Acts amending the Constitution between January  2012 and December  2017 are: 
Nos. 01 and 02 of 2012, No. 01 of 2013, Nos. 01 and 02 of 2015, No. 01 of 2016 and Nos.01, 2, 3 and 4 
of 2017.  
2 Article 197 of the Political Constitution, as amend ed by Legislative Act No.  02 of 2015.  
3 Article 112 of the Political Constitution, as amended by Legislative Act No.  02 of 2015.  
4 The ministries are: Interior; Foreign Affairs; Finance and Public Credit; Justice and Law; National 
Defence; Agriculture and Rural Development; Health and Social Welfare; Labour; Mining and Energy; Trade, 
Industry and Tourism; National Education; Environment and Sustainable Development; Housing, Urban and 
Territorial Affairs; Information and Communication Technologies; Culture; and Transport.  
5 Administrative Department of the Office of the President of the Republic, National Planning 
Department, Department of Public Administration, National Administrative Department of Statistics, 
Administrative Department of the National Intell igence Directorate, Administrative Department of Science, 
Technology and Innovation, Administrative Department for Social Prosperity and Administrative Department of 
Sports, Recreation, Physical Activity and the Use of Leisure Time.  
6 Articles 113, 115 and  189 of the Political Constitution and information provided by the authorities.  
7 Known as the Higher Council of the Judiciary until 2015 (Legislative Act No.  02 of 2015).  
8 International treaties on human rights have constitutional rank (Article 93 of the  Political Constitution).  WT/TPR/S/372/Rev.1 • Colombia  
 
- 32 - 
 
  law to be unconstitutional or if he disagrees with its content. Li kewise, the President may request 
the Congress of the Republic to deal with the law as a matter of urgency, giving it priority on the 
agenda. Draft laws may be subject to an approval referendum, while laws (with some exceptions) 
may be put to a repeal refe rendum.9 A law will be repealed by referendum if 25 % of the electorate 
cast their ballots and an absolute majority is obtained.10 
2.7.  The Constitution further invests the President of the Republic with exceptional and temporary 
legislative powers allowing him t o issue decree -laws and legislative decrees with the force of law. 
Decree -laws are those issued by the President of the Republic when the Congress invests him with 
extraordinary powers.11 Legislative decrees are issued to declare states of emergency12; such 
decrees are subject to the control of the Constitutional Court. The Congress of the Republic may at 
any time and on its own initiative amend and repeal decree -laws and legislative decrees.13 
2.8.  During the review period, the National Government, assisted by an Intersectoral Commission 
for Regulatory Harmonization, undertook an overhaul of the legal system, which entailed identifying 
regulatory decrees in force that had become obsolete or fallen into disuse and had been (expressly 
or tacitly) repealed. This proce ss was intended to simplify the system and thereby ensure greater 
legal certainty. It led to the creation of a new type of decree, the Single Regulatory Decree (DUR), 
which contains a compilation of all regulatory decrees in force for each sector and becom es the sole 
source for legal consultation.14 Legislation may be consulted on line, through the Single System of 
Regulatory Information (SUIN JURISCOL).15 
2.9.  Twenty -four DURs were issued in 2017. Most of the decrees regulating trade are contained in 
Single Regul atory Decree No.  1.074 of 26  May 2015, except for decrees on customs regulations 
(Decree No.  390 of 2016) and the free zone regime (Decree No.  2147 of 2016). At the sectoral level, 
Single Decree No.  2.555 of 2010 collating the regulations on financial serv ices remains in  force.  
2.10.   The President of the Republic holds exclusive power to sign international agreements, which 
must be approved by the Congress of the Republic. When the Congress approves an agreement it 
issues the corresponding law approving it. The C onstitutional Court verifies that neither the 
agreement nor the approving law is contrary to the provisions of the Constitution. Once it rules that 
there are no grounds for unconstitutionality, the President of the Republic may ratify the agreement. 
Howeve r, an economic or trade agreement reached in international organizations may be 
implemented provisionally, provided that the ratification process has begun.16 
2.11.   On the trade front, the Constitution (Article 336) authorizes monopolies only if they are 
establis hed with discretion to allocate revenue, in other words if the revenue they produce serves to 
fund public and social interest services. There are currently two such revenue -generating 
monopolies: gambling and betting, and the manufacture and sale of spirit s (Section 3.3.4).  
                                                
9 Laws approving international agreements, laws on fiscal and tax matters and the Budget Law are 
excluded.  
10 Articles 163 and 170 of the Constitution and Article 5 of Law No.  134 of 31  May 1994.  
11 The President of the Republic is invested with extraordinary powers by an absolute majority of the 
two houses of the Congress of the Republic and may exercise them for a maximum of six months and only with 
respect to certain matters. They may not be used to issue codes, statutes and basic  laws, or to levy taxes.  
12 State of war abroad, state of internal unrest and state of emergency.  
13 Articles 150, 212 -215 and 341 of the Political Constitution, online information from the Office of the 
President of the Republic, viewed at: http://wsp.presidencia.gov.co/dapre/atencion/Paginas/preguntas -
frecuentes.aspx . 
14 The DUR is structured as follows: (a) Book 1, which describes the sector's administrative struc ture 
and is therefore not regulatory in nature; (b) Book 2, which compiles all regulatory decrees in force governing 
the sector; (c) Book 3, stipulating that the DUR governs the matters compiled therein. Any provision on these 
matters not appearing in the DUR is repealed, subject to possible exceptions. Decree No.  1.052 of 2014, and 
online information from the Department of Public Administration, viewed at: 
http://www.funcionpublica.gov.co/ -/decretos -unicos -reglamentarios -toda-la-informacion -en-un-solo-lugar. 
15 Online information viewed at: http://www.suin -juriscol.gov.co/legislacion/decretosUnicos.html . 
16 Articles 150, 189, 224 and 241 of the Constitution.  WT/TPR/S/372/Rev.1 • Colombia  
 
- 33 - 
 
  Chart 2.1 Legislative process  
 
Source:  WTO Secretariat, on the basis of Articles 150 -170 of the Political Constitution of Colombia and online 
information from the House of Representatives, viewed at: 
http://www.camara.gov.co/portal2011/proceso -y-tramite -legislativo/como -se-tramita -una-ley. 
2.12.   During the review period, Colombia further developed the Online Government Strategy 
(GEL Strategy) which digitizes a range of formalities, for example, sanitary registration. In 2017, 
the sanitary registration of (only synthetic) medicines could be done online, while this procedure 
was still being implemented for other medicines, foods and beverages, cosmetics, pesticides and 
cleaning products. Other formalities that will become possible online will be the creation of 
enterprises, the registration of electronic invoices and the payment of local taxe s.17 
2.2  Trade policy formulation and objectives  
2.13.   The Ministry of Trade, Industry and Tourism ( MinCIT ) is the body that formulates and 
implements Colombia's trade policy, which it coordinates with the Higher Council for Foreign Trade. 
The latter makes recommenda tions on all matters related to foreign trade, such as tariff measures, 
                                                
17 Online information viewed at: http://strategy.gobiernoenline a.gov.co/623/w3 -channel.html ; and 
Ruta de la Excelencia  strategy, viewed at: http://rutadelaexcelencia.gov.co/634/w3 -channel.html . 
ELABORATION OF THEDRAFT LAW
CONGRESS OF THE
REPUBLIC
COMMITTEESubmission of thedraft law
PLENARYAppoints the
twocommittees
(onein each chamber ) 
thatwillstudy the
draft lawOrders
publication of 
thedraft law
RAPPORTEURSRapporteurs are 
appointed
Prepare an
initial report First debate
Thedraft lawis
approved
Prepare a second
report
Thedraft lawis
approvedThedraft lawapproved in plenary
issentto theother chamber
(Senate orHouse of 
Representatives ) tobegin itsown
debate process , firstin committee , 
thenin plenary .Thedraft lawissentto theappointed
Committee (in theSenate orin theHouse
of Representatives )to begin theformalities
PRESIDENT OF THE
REPUBLIC
Adopts and 
enacts thelawTable objections Yes No
Thedraft lawisreturned to 
thechamber where it
originated to be studied
againThevetoed document isapproved by
a simple majority of bothchambersSecond debateWT/TPR/S/372/Rev.1 • Colombia  
 
- 34 - 
 
  customs regimes and procedures, customs valuation, export promotion or the adoption of special 
trade measures, among others.  
2.14.   The MinCIT  has a technical committee, the Committee on Cust oms, Tariff and Foreign Trade 
Matters (Triple A Committee), which advises both the MinCIT  and the Higher Council for 
Foreign  Trade on matters relating to the customs and tariff regime. For example, the Committee on 
Customs, Tariff and Foreign Trade Matters  may recommend customs tariff changes after studying 
requests from sectors of the economy, for example, requests to introduce tariff quotas or raise or 
reduce tariff rates.18 
2.15.   The MinCIT  represents Colombia in international trade negotiations. The Higher Cou ncil for 
Foreign Trade is the body that recommends Colombia's participation in such negotiations. Part and 
parcel of the process of formulating trade negotiation strategy are mechanisms for consulting with 
the private sector and enabling it to put forward its position on the negotiations. The private sector 
is also represented on the Joint Committee on Foreign Trade, in which the Higher Council for Foreign 
Trade also participates. This Committee prepares foreign trade strategy proposals, with an emphasis 
on boosting productivity and competitiveness in order to develop export potential. It also interacts 
with civil society, which may express its views on the progress of trade negotiations and the 
implementation of agreements. The MinCIT  is responsible for imp lementing trade  agreements.19 
2.16.   Since 2012, Colombia has continued to implement a policy of greater integration in the world 
economy, with a view to securing better market access conditions so as to boost exports and find 
the best suppliers for its imports. U nder the current National Development Plan (PND) 2014 -2018 
government action focuses on enhancing productivity as the main driver of export growth. Emphasis 
is also placed on export diversification, in other words exporting more non -mining energy products.20 
2.17.   To stimulate exports, the PND 2014 -2018 calls for consolidating the position of Colombia's 
exportable supply on international markets, be they markets to which Colombia already exports, or 
new markets. It is believed that this aim can be achieved by taki ng advantage of the opportunities 
offered by trade agreements, namely preferential market access and integration in regional value 
chains. It is also considered important to improve the quality system so that exports can fulfil 
international technical requ irements. Other actions include supporting companies in developing 
innovative processes for the production of technologically more sophisticated goods. Further aims 
are to simplify and streamline customs formalities and develop tools to assist enterprises with their 
outsourcing process.  
2.18.   The authorities state that trade policy has also been directed towards cutting production costs. 
For example, the formalities for granting companies access to the Special Import -Export Systems 
("Plan Vallejo") (Section 3.3.1 .4) have been streamlined; efforts have been made to bring down 
export costs; and tariffs have been eliminated definitively for more than 3,400 tariff subheadings 
(including raw materials and capital goods).21 
2.19.   Several bodies are involved in the monitoring o f trade policy implementation. These include 
the MinCIT  (through its Office of Economic Studies) or the National Planning Department (through 
the National System of Management and Results Evaluation (SINERGIA) and the CONPES  document 
follow -up system (SISC ONPES)). The Office of Economic Studies monitors trade flows so as to 
identify companies or sectors in need of greater support in taking advantage of trade agreements, 
while the National Planning Department undertakes the overall monitoring of the public p olicies 
contained in the PND and in documents of the National Economic and Social  Policy  Council 
(CONPES). Furthermore, the authorities underline that Law No.  1.868 of 1  September  2017 lays 
down the obligation to assess the impact of regional trade agreeme nts ratified by Colombia. The 
evaluation, which will be submitted to the trade unions, will be presented to the Congress of the 
                                                
18 Online information from the M inCIT, viewed at: 
http://www.MinCIT.gov.co/mincomercioexterior/publicaciones/132/politica_de_comercio_exterior . 
19 Single Regulatory Decree No.  1.074 of 26  May 2015; Decree No. 0566 of 21  March  2013; and online 
information from the M inNCIT, viewed at: 
http://www.mincit.gov.co/publicaciones/16555/espacios_de_participac ion_para_la_sociedad_civil . 
20 The PND 2014 -2018 may be viewed at: https://www.dnp.gov.co/Paginas/inicio.aspx . 
21 According to the authorities, companies have saved some US$ 400  million annually as a  result of the 
elimination of tariffs.  WT/TPR/S/372/Rev.1 • Colombia  
 
- 35 - 
 
  Republic. As at end 2017, no evaluation had taken place. The authorities nonetheless stress that the 
trade defence mechanisms un der regional trade agreements were evaluated in 2016.22 
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.20.   Colombia is a founding Member of the WTO. This is the fifth review of the country's 
trade  policies by the Trade Policy Review Body. Colombia has signed the protoco ls on 
telecommunications and financial services annexed to the General Agreement on Trade in  Services, 
has acceded to the Protocol amending the Agreement on Trade -Related Aspects of Intellectual 
Property Rights, and participates in the Information Technolo gy Agreement (ITA). Colombia is not a 
party to the plurilateral agreements, but participates with observer status in the Committee 
administering the Agreement on Government Procurement. The authorities have stated that, as at 
February  2018, Colombia was in  the process of ratifying the Trade Facilitation Agreement (TFA), 
which was then before the Constitutional Court.23 Colombia accords at least MFN  treatment to all its 
trading partners.  
2.21.   Colombia has notified the WTO of the trade measures it has adopted since  its previous review 
in 2012 (Table A2.1). More specifically, notifications were submitted regarding the trade facilitation 
clauses that Colombia would implement immediately following the entry into force of the TFA (known 
as "Category A" commitments).24 Colombia excludes the immediate implementation of some 
provisions, which will be applied after a transition period; in March  2018, Colombia notified the 
time-frames for the implementation of these provisions.25 
2.22.   Between 2012 and 2017, Colombia's trade policies  were challenged on two occasions before 
the WTO Dispute Settlement Body (DSB) (Table 2.1). The complaint submitted by Panama in 2013 
related to Colombia's imposition of a "compound tariff" on certain imports of tex tiles, apparel and 
footwear of C hapters 6 1 to 64 of the HS.26 In 2017 a "compliance panel" was established, comprising 
the members of the Panel that had initially examined the matter. In December  2017 two compliance 
procedures were in progress.27 In the other dispute settlement case, Colombia - Measures 
Concerning Imported Spirits , the Panel had still not been constituted at the end of 2017. During the 
review period Colombia did not file any complaints but participated as a third party in 17 dispute 
settlement cases.  
Table 2.1 Dispute settlement cases involving Colombia,  
1 January  2012 -31 December  2017  
Respondent/  
complainant  Description (receipt of the request for 
consultations)  Status at end December  2017  Document 
series   
Colombia/  
Panama  Measures Relating to the Importation of 
Textiles, Apparel and Footwear (2013)  Compliance proceedings in progress 
(6 March  2017)  WT/DS461  
Colombia/EU  Measures Concerning Imported Spirits 
(2016)  Panel established, but not yet constituted 
(26 September  2016)  WT/DS502  
Source: WTO Secretariat.  
2.23.   The Colombian authorities are of the view that the WTO is doing important work in the area 
of monitoring and aid for trade. They deem it important to support actions that strengthen the 
multilateral trading system so as to provide certainty to economic ope rators, and they consider that 
trade liberalization and the elimination of distortions will contribute to economic growth, job  creation, 
                                                
22 The results of the evaluation may be viewed at: 
https://colaboracion.dnp.gov.co/CDT/Sinergia/Documentos/MDC_In forme_de_Resultados_VP.pdf . 
23 The Congress of the Republic approved the Protocol Amending the Marrakesh Agreement through 
Law No. 1.879 of 9  January  2018. The law has been submitted to the Constitutional Court and has been placed 
on its agenda.  
24 The provi sions concerned are all those that expedite the movement, release and customs clearance of 
goods (Articles 1 -12 of the Agreement), with the following two exceptions: (a) the initiation of procedures for a 
second test (Article 5.3) and (b) measures regardin g the release of perishable goods (Article 7.9).  
25 WTO document G/TFA/N/COL/1 of 5  March  2018.  
26 WTO document WT/DS461/AB/R of 7  June 2016.  
27 For further information on this case, see online information from the WTO, viewed at: 
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds461_e.htm . WT/TPR/S/372/Rev.1 • Colombia  
 
- 36 - 
 
  greater fairness, and increased participation in value chains. Although Colombia recognizes and 
underscores the achieve ments of the negotiation process, it stresses that there is still room for 
improvement in key areas such as agriculture. Likewise, Colombia favours the negotiation of new 
topics (for example, electronic commerce, investment facilitation and greater partici pation by micro, 
medium and small enterprises in international trade) as well as building awareness of and seeking 
solutions to the growing problem of illicit trade.28 
2.3.2   Regional and preferential agreements  
2.24.   Colombia is a member of the Latin American Integrati on Association (LAIA), in which 
framework it has signed partial scope agreements with member and non -member partners. 
Colombia is a founding member of the Andean Community of Nations (CAN) and of the 
Pacific  Alliance and participates in several bilateral a nd plurilateral trade agreements (Chart 2.2). 
Colombia signed preferential trade agreements with Israel and Panama29 in 2013, and in early 2018 
was engaged in negotiations with Japan and Turkey. In the framework of the Pacific Alliance, 
negotiations began i n 2017 on a free trade agreement with Australia, Canada, New Zealand and 
Singapore, which are candidates for associate membership of the Pacific Alliance. The authorities 
point out that these negotiations are aimed at enhancing the integration of the Pacif ic Alliance in 
global value chains, promoting export diversification and greater value added, deepening trade and 
cooperation in the Asia -Pacific region, securing better access to new technologies, and promoting 
foreign investment.  
2.25.   During the period under review, Colombia began implementing new tariff elimination 
programmes based on the entry into force of regional trade agreements with the Pacific Alliance, 
Costa Rica30, the Republic of Korea, the United States and the EU (Table 2.2).31 These agreements 
also include non -tariff measures to facilitate trade and other measures to encourage investment 
flows. The agreements likewise provide improved market access for service providers.  
                                                
28 WTO document WT/MIN(15)/ST/37 of 18  December  2015, and information provided by the 
authorities.  
29 Colombia also has an agreement with P anama in the LAIA framework (AAP.A25TM No.  29). 
30 Colombia also has an agreement with Costa Rica in the LAIA framework (AAP.A25TM No.  7). 
31 The WTO Committee on Regional Trade Agreements has circulated factual presentations on the trade 
agreements with the United States (WTO document WT/REG314/1 of 15  July 2015) and the European Union 
(WT/REG333/1/Rev.1 of 2  April 2015).  WT/TPR/S/372/Rev.1 • Colombia  
 
- 37 - 
 
  Chart 2.2 Regional trade agreeme nts in force in Colombia, 2017  
 
Source:  Regional Trade Agreements Information System (RTA -IS). Viewed at: http://rtais.wto.org ; and 
online information from the MinCIT , viewed at: http://www.tlc.gov.co . 
Table 2.2 Features of the new regional trade agreements implemented by Colombia 
since 2012  
 Pacific 
Alliance  Costa Rica  Rep. of 
Korea  USA EU 
Date of entry into force  2016 2016 2016 2012 2013 
Coverage  Goods and 
services  Goods and 
services  Goods and 
services  Goods and 
services  Goods and 
services  
Foreign trade in 2016  (% of total)  
Colombian exports (f.o.b.)  8.5 0.7 1.3 31.9 15.8 
Colombian imports (c.i.f.)  11.0 0.2 1.9 26.4 14.1 
Tariff elimination programme   
End of the tariff elimination period  2030 2030 2034 2030 2028 
 (% of total tariff lines)  
Duty-free lines  99.6 94.6 99.3 100.0  96.1 
Immediate access  95.6 68.9 59.6 75.5 61.1 
Less than ten years  2.7 15.6 28.3 8.5 25.7 
Ten years  0.3 9.8 8.8 15.2 9.1 
More than ten years  0.8 0.2 2.7 0.8 0.2 
Lines still subject to tariffs  0.4 5.4 0.7 0.0 3.9 
Source: Information provided by the authorities.  
2.26.   In 2012, Colombia, Chile, Mexico and Peru signed a framework agreement establishing a 
common area for political and trade integration and cooperation, known as the Pacific Alliance. 
Colombia also has bilateral free trade agreements with Chile and Mexico an d its trading relations 
with Peru are set in the framework of the Andean Community ("existing trade agreements"). On the 
WT/TPR/S/372/Rev.1 • Colombia  
 
- 38 - 
 
  trade front, the Pacific Alliance strives for greater integration with respect to existing trade 
agreements. The Trade Protocol of the Pacific Alliance (protocol additional to the 
Framework  Agreement) entered into force in 2016.32 The Colombian authorities stress that trade 
opening in the Pacific Alliance framework will make for deeper trade relations with partners that 
already receive a s ignificant proportion of Colombia's exports, and this even though some 92 % of 
the goods circulating between the Parties when the Trade Protocol took effect were already duty  
free. 
2.27.   In the Pacific Alliance framework, the authorities indicate that Colombia ha s undertaken to 
eliminate tariffs on the entire tariff universe, except for sugar, some food preparations and 
ethyl alcohol. Colombia uses longer tariff elimination periods (the longest being 17 years) for 
sensitive goods (rice, coffee, black beans, flour,  maize (corn) and plantains, for example). There are 
no tariff lines subject to tariff quotas. The authorities have stated that, for Colombia, one of the 
major benefits of the Trade Protocol lies in the greater flexibility of preferential rules of origin a s 
compared to existing trade agreements. In particular, cumulation of origin (including extended 
cumulation) is permitted, as is, for the textiles and clothing sector, the use of the short supply 
mechanism, which was not provided for in the existing trade agreements with Chile and Peru, and 
the use of which has been streamlined with respect to provisions under the existing trade  agreement 
with Mexico.33 
2.28.   As regards the free trade agreement with Costa Rica, at the end of the tariff elimination period 
Colombia will allow duty -free access to its market for 81 % of the universe of agricultural goods and 
98% of the universe of industrial goods. Colombia excludes 5.4 % of the tariff universe from 
preferential treatment; this includes goods such as rice, coffee, beer, milk, flour and certain 
chemicals. Only two tariff lines are subject to tariff quotas (Table A4.1). Under the agreement, 
preferential treatment is also accorded to goods produced in the free zones of both parties, and for 
Colombia, also to those produced w ith inputs that have entered Colombia's territory free of duty 
under the Special Import -Export Systems.34 
2.29.   The free trade agreement with the Republic of Korea is Colombia's first such agreement in 
Asia. By 2034, Colombia will grant duty -free access to 100 % of the lines in the tariff universe of 
industrial goods and to 95.4 % of the universe of agricultural goods. The Colombian authorities have 
stated that import tariffs on Korean industrial goods will be phased out, taking into account the 
"sensitiveness of do mestic production", while duty -free entry will be accorded more quickly to raw 
materials. Only six tariff lines are subject to tariff quotas (Table A4.1).35 
2.30.   Up to 2012, trade relations between Colombia and the United States were governed by the 
Andean Trade  Promotion and Drug Eradication Act (ATPDEA), under which the United States 
accorded unilateral tariff preferences to certain imports from Colombia. These preferences were 
established in the Trade Promotion Agreement which came into effect in 2012 and whic h also 
extended preferential treatment to other goods. Hence, according to the authorities, 263 new 
products were exported to the United States between 2012 and mid -2017. The agreement contains 
protection mechanisms for sensitive agricultural products, for  example, longer tariff reduction 
time-limits or tariff quotas. In the case of Colombia, tariff quotas are applied to 0.8 % of the universe 
of agricultural goods (58 HS lines) (Table A4.1). Likewise, Colombia points out that the short supply 
mechanism can b e used for the textiles and clothing sector.36 
                                                
32 The trade protocol was amended in 2015 and in 2016: technical barriers to trade in cosmetic products 
were eliminated and provisions on electronic commerce and the supply of telecommunication services were 
modified.  
33 Online information from the M inCIT, viewed at: 
http://www.tlc.gov.co/publicaciones/2578/alianza_del_pacifico ; and online information from the Pacific 
Alliance, viewed at: https://alianzapacifico.net/wp -content/uploads/2016/06/protocoloAP.pdf . 
34 Online information from the M inCIT, viewed at: 
http://www.tlc.gov.co/publicaciones/3432/tratado_de_libre_comercio_entre_colombia_y_costa_rica . 
35 Online information from the M inCIT, viewed at: 
http://www.tlc.gov.co/publicaciones/733/acuerdo_de_libre_comercio_entre_la_republica_de_colombia_y_la_re
publica_de_corea . 
36 Online information from the M inCIT, viewed at: 
http://www.tlc.gov.co/publicaciones/14853/acuerdo_de_promocion_comercial_entre_la_republica_de_colombi
a_y_estados_unidos_de_america . WT/TPR/S/372/Rev.1 • Colombia  
 
- 39 - 
 
  2.31.   Until 2013, the trade relations between Colombia and the European Union were governed by 
the Generalized System of Preferences (GSP) Plus, under which the EU granted unilateral and 
temporary tariff preferences to certain Colombian imports. The trade agreement that took effect in 
2013 bound the preferences granted under the GSP Plus and expanded preferential treatment to a 
greater number of goods. Under the trade agreement, Colombia will phase out tariffs on 93.6 % of 
the universe of agricultural goods and 100 % of the universe of industrial goods. Rice, pork and 
maize (corn) are some of the agricultural goods that Colombia excludes from preferential treatment. 
Colombia also applies tariff quotas representing 1.1 % of the tariff universe (85 lines) (Table A4.1). 
The agreement permits the application of agricultural safeguard measures, which Colombia may 
activate for certain dairy products (cheese and milk).37 
2.32.   Apart from these trade agreements, the partial scope trade a greement between Colombia and 
the Bolivarian Republic of Venezuela (AAP.C No.  28), framed in the LAIA trade integration process, 
also entered into force in 2012. Through this agreement, Colombia accords preferential treatment 
to 67% of all tariff lines. Al though most of the goods enter free of duty (83.2 % of the total in 2017), 
margins of preference have been negotiated for sensitive goods, among which Colombia includes 
agricultural goods. Similarly, special agricultural measures can also be taken, allowing  for the (partial 
or total) suspension of preferential tariffs when imports exceed a specific volume. In the case of 
Colombia, the goods that may be subject to a special agricultural measure are: corn starch, some 
chocolates and food preparations containin g cocoa, and tomato  sauces  (ketchup).38 
2.33.   Meanwhile, the free trade agreement with the countries of the European Free Trade  
Association (EFTA) that had come into effect for Switzerland and Lichtenstein in 2011, became 
effective for Iceland and Norway in 2014.39 
2.3.3   Other agreements and arrangements  
2.34.   Colombia continues to benefit from the unilateral tariff preferences granted by Australia, the 
Russian Federation, Japan, Kazakhstan, New Zealand and Turkey.40 
2.35.   Colombia takes part in the negotiations on the Trade in Services Agreement (TISA).41 
2.4  Investment regime  
2.36.   The private investment (domestic and foreign) regime in Colombia is governed by 
Single  Regulatory Decree No.  1.068 of 26  May 2015, which contains in its compilation 
Decree  No. 2.080 of 18  October  2000. In 2017,  the provisions governing the investment regime 
were amended, principally to simplify the procedures for the registration of foreign investments.42 
2.37.   Colombia accords national treatment to investments made by foreigners. Colombia's regime 
is open to private i nvestment, whether domestic or foreign. Foreign private investment is allowed in 
almost all sectors of the economy, but some exceptional prohibitions are maintained, chiefly on 
national security grounds (Table 2.3). Although foreign investment in the provi sion of private 
surveillance and security services has been prohibited since 1994, in practice there are 
foreign  private companies operating in the market. They are enterprises that were set up before the 
prohibition was introduced and which have been allo wed to continue operating. Foreigners are not 
allowed to purchase land in border, island or coastal areas of Colombia's territory.43 
                                                
37 Online information from the M inCIT, viewed at: 
http://www.tlc.gov.co/publicaciones/18028/acuerdo_comercial_entre_la_union_europea_colombia_y_peru . 
38 Summary of the Agreement . Viewed at: 
http://www.tlc.gov.co/publicaciones/2573/acuerdo_de_alca nce_parcial_de_naturaleza_comercial_aapc_n_28_
entre_la_republica_de_colombia_y_la_republica_bolivariana_de_venezuela . 
39 To enter into force, the agreement had to be ratified by each country's parliament. For further 
information on the agreement with the EF TA, see WTO document WT/TPR/S/265/Rev.2 of 1  August  2012.  
40 Online information from the WTO, viewed at: http://ptadb.wto.org/Country.aspx?code=170 . 
41 Online information from the M inCIT, viewed at: 
http://www.tlc.gov.co/publicaciones/31209/acuerdo_sobre_el_comercio_de_servicios__trade_in_services_agre
ement_tisa . 
42 DUR No.  1.068 of 2015 as amended by Decree No.  119 of 26  January  2017.  
43 Decree No.  1415 of 18  July 1940.  WT/TPR/S/372/Rev.1 • Colombia  
 
- 40 - 
 
  Table 2.3 Restrictions on private investment  
Activity  Type of restriction by  origin of the 
investment  Legal framework  
Domestic  Foreign  
Defence and national security  N/A Prohibition  Single Regulatory Decree 
No. 1.068 of 2015  
Manufacture, sale, import and export of 
arms, ammunition, explosives and the 
raw materials, machinery and 
appliances needed for their manufacture  Exclusively State -run activities  Political Constitution and 
Decree No.2.335 of 1993  
Gambling and betting  Revenue -generating monopoly  Political Constitution  
Fisheries  N/A Small -scale commercial 
fishing: prohibition 
Industrial fishing: 
requires a Colombian 
partner  Decree No.  2.256 of 1991 
and Agreement No.  005 
of 2003  
Processing, disposal and elimination of 
toxic wastes (dangerous or radioactive) 
not produced in Colombia  N/A Prohibition  Single Regulatory  Decree 
No. 1.068 of 2015  
Production, distribution, sale and 
import/export of spirits  Revenue -generating monopoly  Political Constitution  
Free-to-air television services  N/A ≤ 40% of the company's 
capital + reciprocity  Law No.  680 of 2001  
Surveillance and private security 
services  N/A Prohibition, with 
exceptions  Decree No.  356 of 1994  
N/A Not applicable.  
Source:  WTO Secretariat, and information provided by the authorities.  
2.38.   Depending on the type of foreign investment (direct or portfolio), investors must be 
represented in Colombia by an agent (direct investment) or a management company 
(portfolio  investment).44 
2.39.   Colombian law does not require prior authorization of investments unless they are intended 
for the sectors of mining and hydrocarbons, as well as financial services. In these cases, the 
institutions responsible for issuing the respective prior authorizations are the Ministry of Mining and 
Energy and the Financial Supervisory Authority of Colombia.45 
2.40.   Registration of foreign investments with the Cen tral Bank of Colombia is mandatory, as it is 
for additional contributions, reinvestments, remittances and capital reimbursements. When prior 
authorization is required, the registration takes place once the authorization is obtained. The 
registration proced ures were modified in 2017. The change concerned mainly the registration of 
direct investments made under contractual arrangements such as licensing or technology transfer 
agreements. Since 2017, investors have been able to register their investments at an y time 
(previously, there had been a 12 -month time -limit) and are now exempt from mandatory submission 
of documents supporting the operation. Direct investments in foreign exchange are still registered 
automatically upon submission of the foreign exchange declaration. Likewise, specific procedures 
are still in place for the registration of direct foreign investments made in subsidiaries of foreign 
companies in the mining and hydrocarbons sector, as well as in the financial sector.46 
2.41.   The registration of forei gn investment enables Colombia's Central Bank to obtain statistics on 
investment flows. For the investor, registration is a precondition for gaining access to the foreign 
exchange market. There are no foreign exchange restrictions in Colombia: the foreign  exchange 
market can be used to make payments abroad, at any time and in freely convertible currency, in 
respect of profits from an investment or the proceeds from its liquidation. Under the law, however, 
                                                
44 The managing company must be a stockbroking firm, a trust company or an investment management 
company. Single Regulatory Decree No.  1.068 of 2015.  
45 Ibid. 
46 For further information on the registration of foreign investment, see External Regulatory Circular 
DCIN -83 from the Central Bank of Colombia (Banco de la República). Viewed at: 
http://www.banr ep.gov.co/es/compendio -dcin83 . WT/TPR/S/372/Rev.1 • Colombia  
 
- 41 - 
 
  Colombia may impose foreign exchange restrictions wh en the balance of its international reserves 
falls below three months' worth of imports.47 The authorities stress that there is no remittance tax 
in Colombia.  
2.42.   Subsidiaries of foreign companies engaged in exploration and exploitation of petroleum, 
natural ga s, coal, ferronickel or uranium, or in services linked exclusively to the hydrocarbons sector 
are not required to re -inject into the foreign exchange market the proceeds from their own foreign 
currency denominated sales. However, such subsidiaries may not purchase currencies on the foreign 
exchange market except to transfer capital abroad in the event of liquidation or to transfer abroad 
income obtained from the sale of hydrocarbons (or the provision of services associated with the 
hydrocarbons sector) on t he Colombian market. For other operations, these companies must restore 
to the foreign exchange market the foreign currency they require to cover expenses in Colombian 
legal tender. Subsidiaries that do not wish to belong to the special foreign  exchange re gime may opt 
to adhere to the general foreign exchange regime. They must notify their decision to the 
Central  Bank, which suspends the application of the special foreign  exchange regime for a fixed 
period of ten years.48 
2.43.   Financ ial stability contracts with t he State were eliminated at the end of 2012. Those that had 
been signed before then remain in force until their termination.49 The authorities point out that the 
reason for their elimination was the fiscal cost of the contracts.  
2.44.   ProColombia is the governmen t agency that advises foreign investors, providing them with all 
types of information to facilitate their investments and offering them assistance in identifying 
business opportunities in Colombia. To promote investments, Colombia continues to negotiate 
agreements that protect foreign investment, and others that avoid double taxation (Table A2.2). 
Colombia is also a member of the International Centre for Settlement of Investment 
Disputes  (ICSID) and recognizes the guarantees provided by the Multilateral Inv estment Guarantee 
Agency (MIGA) and by the Overseas Private Investment Corporation (OPIC) of the United States. 
There are also tax exemptions for companies set up in free zones and for those operating in certain 
industries (for example the hotel industry o r the renewable energies industry).  
2.45.   Investors may set up businesses in Colombia through commercial companies (with their own 
legal personality) or subsidiaries of foreign companies (which have no legal personality separate 
from that of the parent company).  There are three types of commercial companies in Colombia: 
simplified joint stock companies, private limited companies and public limited  companies.  
2.46.   The Commercial Code (Article 58) stipulates that for a foreign company to engage in 
"permanent" business, it must set up a subsidiary domiciled in Colombia. Activities deemed 
"permanent" include: (i) opening commercial establishments or business offices (ii) performing 
works or service provision contracts (iii) engaging in financial activities (attracting priv ate savings); 
(iv) operating in the mining industry, including the provision of relevant services; and (v) conducting 
activities contracted out by the State to the private sector.50 The authorities emphasize that although 
the Commercial Code lays down the g eneral rules, there may be rules specific to each sector; the 
Mining Code, for example, allows foreigners to set up branches and subsidiaries in the mining sector.  
2.47.   All enterprises operating in Colombia are subject to oversight by a supervisory authority, 
which monitors their financial, legal, technical and professional viability. This oversight is generally 
undertaken by the Companies Supervisory Authority, except in the sectors of transport (Ports and 
Transport Supervisory Authority) and financial service s (Financial Supervisory Authority 
of Colombia).  
                                                
47 Single Regulatory Decree No.  1.068 of 2015; and online information from the Central Bank of 
Colombia, viewed at: http://www.banrep.gov.co/es/terminos -regimen -cambiario . 
48 Articles 48 -52 of External Resolution No.  8 of 2000 of the Board of Directors of the Central Bank of 
Colombia and amendments thereto. Viewed at: http://www.banrep.gov. co/es/reglamentacion -temas/5444 . 
49 Article 166 of Law No.  1.607 of 26  December  2012 repealing Law No.  963 of 8  July 2005.  
50 Concessions were awarded in 2017 for: (i) the provision of household public services (distribution of 
electricity, natural gas and L PG, water supply and sewerage services); (ii) the provision of broadcasting 
services; (iii) the provision of land transport services; and (iv) the construction, operation and maintenance of 
public transport infrastructure.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, valuation and requirements  
3.1.1.1   New customs regulations and trade facilitation measures  
3.1.  The Natio nal Tax and Customs Directorate (DIAN) is the institution responsible for customs 
administration in Colombia. During the period under review, Colombia made sweeping changes in 
its customs legislation. With regard to the WTO Trade Facilitation Agreement, Co lombia notified the 
designation of all the provisions of Section I of the Agreemen t, except for Article 5.3 
(Test Procedures) and Article 7.9 (Perishable Goods), as Category A commitments.1 Pursuant to Law 
No. 1.879 of 9  January  2018, Colombia adopted the Protocol of Amendment to insert the Agreement 
on Trade Facilitation into Annex 1A to the WTO Agreement. At the time of writing this report, the 
Constitutional Court was engaged in the process of reviewing the constitutionality of Law No.  1.879, 
following w hich the Government will be able to confirm ratification of the Protocol at the WTO.  
3.2.  In 2013, the Congress enacted the Customs Framework Law (Law No.  1.609 of 
2 January  2013), by which the Government must be guided when modifying duties, tariffs and other 
provisions of the customs regime. The objectives which the Government must pursue in 
implementing Law No.  1.609 include the application of international agreements and treaties and 
participation in economic integration processes, as well as the facilitatio n and streamlining of foreign 
trade operations and promotion of the use of modern technologies and communications media. The 
Law also sets out specific obligations for the Government in the fight against smuggling and money 
laundering.2 
3.3.  By Decree No.  390 o f 7 March  2016 the Government established a new Customs Statute aimed 
at compiling, updating and simplifying Colombia's regulations and adjusting them to best 
international practices, in order to facilitate trade and implement Colombia's commitments under 
trade agreements. Decree No.  390 also seeks to strengthen risk management in customs control so 
as to neutralize smuggling and money laundering, prevent environmental, sanitary and 
phytosanitary risks, as well as the violation of intellectual property righ ts, protect health and ensure 
both border and logistics -chain security.  
3.4.  The new Customs Statute provides for the phased implementation of its more than 
670 articles.3 A first set of provisions entered into force 15 days following the publication of 
Decree  No. 390 (31  March  2016); a second group after 180 days (7  September  2016), by which 
time the DIAN had to issue the corresponding regulations; and a third group of provisions will enter 
into force when the necessary IT adjustments have been made for their i mplementation, which 
cannot take more than 24 months.4 In March  2018 a draft decree was being prepared to extend this 
period until November  2019.  
3.5.  The main changes introduced by Decree No.  390 include, inter alia,  the harmonization of 
terminology, processes  and procedures with international standards; a new comprehensive risk 
management system as a fundamental pillar for the exercise of customs control; new requirements 
and categories of foreign trade operators classified on the basis of risk, and the elimin ation of 
previous types of special treatment5; the shift of responsibility to the declarant and the elimination 
of the obligation to use a customs agent/broker after a transition period (paragraph 3.8); the 
possibility of requesting early decisions in seve n areas; introduction of the customs warehousing 
regime; improvements in the system of guarantees covering customs obligations; and a new penalty 
system. These changes are described below in greater detail.  
                                                
1 WTO Documents WT/PCTF/N/COL/1 o f 13 June 2014; and G/TFA/N/COL/1 of 5  March  2018.  
2 Law No.  1.609 of 2  January  2013.  
3 Articles 674 and 675 of Decree No.  390 of 7  March  2016.  
4 The rules of Decree No.  2685 of 1999 and its amendments and additions will be repealed as from the 
date of ent ry into force of the provisions of Decree No.  390. 
5 The categories of Regular Customs Users (UAP) and High Export Users (ALTEX) will disappear after 
four years from the date of entry into force of Decree No.  390. WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.6.  Decree No.  390 (Article 142) establishes the foll owing import regimes: definitive importation; 
suspensive regimes; processing and assembly; and special import regimes; the latter will be phased 
in when the corresponding electronic information systems (SIEs) are available.  
3.7.  Other measures designed to facil itate trade under the new Customs Statute include abbreviated 
customs clearance; advance declaration under the customs transit regime (already applied in the 
other regimes); special customs operations for the entry of goods and means of transport6 and exit  
of goods7; mandatory electronic payment, non -intrusive inspection8, simultaneous inspection, 
mandatory use of electronic security devices; and the category of specialized logistics 
infrastructures.  
3.8.  The computerization of formalities for all customs regime s is under way (the transit regime still 
has to be completed), to enable the processing of formalities and the submission of the declaration 
and other supporting documents to be done electronically, together with the use of digital signatures. 
A Computer F orensic Laboratory has been created, and work is also under way on the establishment 
of a Single Monitoring and Control Centre and a National Customs Laboratory. The aim of this set of 
measures is that customs clearance should not take more than 48 hours f rom the arrival of the 
goods. The authorities have indicated that the average time for customs clearance from receipt of 
the import declaration has been cut from 23.2 hours in 2012 to 20.5 hours in 2017.9 
3.1.1.2   Customs procedures  
3.9.  Importers must be registered in the Single Tax Register (RUT) with the DIAN and, if they are 
legal persons, must be domiciled and/or legally represented in Colombia. In addition, when the 
goods for import are subject to prior registration, known as automatic licensing (Section  3.1.5.2.1) , 
the importers must be included in the Users Register of the Single Window for Foreign Trade 
(VUCE).10 In 2014, the Ministry of Trade, Industry and Tourism ( MinCIT ) made available to users 
free of charge the digital certificate that is now required for reg istration with the VUCE.11 
3.10.   Under the new customs regulations, the "declarant" is the importer, exporter, declarant of a 
customs regime, express delivery operator, or transporter (in the case of transhipment and 
cabotage).12 After a one -year transition period  starting from the entry into force of Decree No.  390, 
it will cease to be necessary to employ the services of a customs broker and responsibility will lie 
solely with the declarant, even where the latter may have given a mandate to a customs broker. 
The r ules that are still in force (Decree No.  2.685 of 1999) require the intervention of a customs 
broker for all imports of a value exceeding US$1,000 and for exports of more than US$10,000. 
During the transition period, the use of the services of a customs br oker is mandatory for imports, 
exports and transit of goods for a value exceeding US$30,000, but this will become optional after 
the transition period.13 Customs brokers will be considered "foreign trade operators", responsible 
solely for carrying out the c ustoms formalities related to their activity.  
3.11.   The import declaration must be signed and submitted by the importer or exporter using the 
DIAN electronic information services, which include a new electronic signature functionality. The 
declaration must be ac companied by the following supporting documents that may be submitted in 
electronic or digitized form: commercial invoice, transport document (bill of lading, airway bill or 
freight bill), freight manifest, packing list, Andean Value Declaration (for impor ts whose declared 
                                                
6 Under the special entry operations, thro ugh a single registration via the electronic information services 
the goods may return to the national territory, either temporarily or definitively, as may the means of transport 
that had left temporarily. Decree No.  390, Article 330 et seq . 
7 Special exi t operations include the temporary exit of goods that were subject to a temporary entry 
customs operation, and definitive exit operations for goods that were subject to the regimes of: temporary 
admission for re -export in the same state; temporary admissio n without undergoing processing; processing 
and/or assembly; and temporary imports of travellers. Decree No.  390, Article 379 et seq.  
8 All ports are equipped for non -intrusive inspection, and this equipment is being introduced in airports 
and border crossing posts.  
9 Online information from the DIAN, viewed at: 
http://sinergiapp.dnp.gov.co/#IndicadorProgEntI/26/1146/4401 . 
10 In order to import and market mercury and produ cts containing mercury, importers must also be 
included in the Single Register of Authorized Importers and Marketers (RUNIC).  
11 MinCIT Circular No.  21 of 28  July 2014, replaced by Circular No.  21 of 2017.  
12 Article 39 of Decree No.  390 of 7  March  2016.  
13 Ibid.,  Article 669.  WT/TPR/S/372/Rev.1 • Colombia  
 
- 44 - 
 
  and invoiced f.o.b. value is US$5,000 or more) and the customs mandate when the declaration is 
submitted through a customs broker. The following may also be required where appropriate: 
certificate of origin; import registration or permit;  health certificate; and other types of clearance or 
authorization according to the type of good.  
3.12.   The Single Window for Foreign Trade (VUCE), created in 2004, enables the online processing 
of the authorizations, permits, certificates or prior clearances re quired by the corresponding 
supervisory bodies for import and export operations. The VUCE is administered by the MinCIT  and 
includes 21 government entities.14 Progress made by the VUCE during the period under review 
includes in particular the  implementation  in 2012 of the s imultaneous inspection system (SIIS) for 
containerized export cargo, which enables four control entities to participate in a single inspection, 
thus reducing the inspection time in ports from three days to one day; the SIIS is expected to be 
applied to import operations in the future. In addition, the physical presentation of a "Letter of 
Responsibility" at the ports of Santa Marta, Barranquilla, Cartagena and Buenaventura has been 
eliminated.  
3.13.   Another advance has been the implementation, si nce 30  October  2015, of the risk 
management system (SAR) for import and export registration applications submitted to the VUCE.15 
The authorities have indicated that, thanks to the SAR, 51 % of the monthly applications for import 
registration are handled by the MinCIT  in three mi nutes and between two and three  working days in 
the case of other governmental control entities, as required by Decree No.  19 of 2012. Registration 
of exporting companies with the Anti -Narcotics Police is also done online through the VUCE, and 
applications for the programmes of the import -export special systems are expected to be 
computerized in the first half of 2018. The VUCE has interoperability for phytosanitary and origin 
certificates with the countries of the Pacific Alliance, an d is expecting to have it for customs 
declarations in 2018.  
3.14.   Importers may use the advance import declaration (prior to the arrival of the goods) in order 
to speed up the customs clearance process. Decree No.  390 of 2016 also established this possibility 
for transit and warehousing regimes. Advance declaration is optional, except where the DIAN 
establishes it as a mandatory requirement, as in the case of imports of footwear, textiles and 
clothing.  
3.15.   After the import declaration has been submitted and accepted,  the risk management system 
establishes whether the goods can be cleared immediately (automatic release or green channel) or 
whether a documentary inspection (yellow channel) or a physical inspection (red channel) is 
necessary.16 In the period 2011 -2016, an  average of 89 % of registered declarations went through 
the green channel, while 9.5 % were subjected to physical inspection (Table 3.1).  
Table 3.1 Inspection percentages by selection channel, 2011 -2016  
(%) 
Selection channel  2011  2012  2013  2014  2015  2016  
Red (physical inspection)  9.0 10.0 9.8 10.7 9.1 8.5 
Yellow (documentary inspection)  2.0 1.0 0.8 0.6 0.7 0.5 
Green (no inspection)  89.0 89.0 89.3 88.6 90.1 90.9 
Other (no assessment owing to system fault)  0.0 0.0 0.02 0.03 0.05 0.14 
Total  100.0  100.0  100.0  100.0  100.0  100.0  
Source:  Information provided by the DIAN.  
3.16.   The new Customs Statute provides that when goods must be submitted for inspection by a 
number of authorities, it will be ensured that the inspections are carried out simultaneously.17 The 
Customs may provisionally suspend release of the goods at the request of an intellectual property 
right holder based on the presumption of pirating or counterfeiting; such a request may also arise 
as a resul t of prior notification from the DIAN.18 
                                                
14 The VUCE website is: http://www.vuce.gov.co . 
15 MinCIT Resolution No.  3.202 of 2015.  
16 Article 217 of Decree No.  390 of 7  March  2016.  
17 Ibid.,  Article 219.  
18 Ibid.,  Article 221, paragraph 2.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.17.   Decree No.  390 provides that the DIAN should focus its control activities on the operations 
that present the greatest risk, in order to safeguard and facilitate international trade, and identifies 
the risk criteria t o be taken into account.19 Coordination is encouraged between the DIAN risk 
management system and the corresponding risk systems of other bodies that control foreign trade, 
such as the National Food and Drug Surveillance Institute (INVIMA) and the Colombian  Agricultural 
Institute (ICA) (Section 3.3.3). The DIAN is currently developing an advanced risk management 
system based on the above -mentioned elements while also strengthening the practice of 
post-clearance checks. Not all the government bodies that work  at the border have risk management 
systems, and therefore avoiding a multiplicity of documentary and physical inspections continues to 
be a challenge for increasing the efficiency of border procedures.  
3.18.   Pursuant to Decree No.  390, import duties and taxes a re only payable once release of the 
goods has been authorized. Payment must be made while the goods are in the place of arrival or 
the temporary or customs warehouse. The decree also makes online payment mandatory as from 
March  2018; however, at the time o f writing of this report a draft decree was being prepared to 
prolong this period up to November  2019. Under the earlier rules, online payment was optional and 
had to be carried out as soon as the import declaration was accepted (other than in exceptional 
cases of deferred or consolidated payment) and prior to the risk analysis and possible inspection of 
the goods.  
3.19.   The new Customs Statute broadens the range of options for guarantees lodged to ensure 
payment of customs obligations.20 In addition, when guarant ees are renewed, reductions in the 
guaranteed amounts are allowed for foreign trade operators that have no record of violations. There 
is also a ceiling for the amount of guarantees. These may be comprehensive (covering various 
operations) or individual (c overing a specific operation), and they will be handled by the electronic 
information system (SIE) that is being built.21 
3.20.   Under Decree No.  390 (Article 12), exporters, importers, producers, their representatives or 
any other authorized individual may reques t advance rulings from the customs authority on matters 
relating to: tariff classification; valuation criteria; origin; drawbacks, suspensions or other 
exemptions from customs duties; duty -free reimportation in outward -processing operations; 
application of  a tariff quota share; and any other matter covered by a trade agreement. Advance 
rulings are to be issued within three months of the request, and in the case of requests for further 
information, the deadline for supplying the information is two months fro m the request. Advance 
rulings are binding for the customs authority and for the importer, and remain valid as long as the 
conditions under which they were issued apply. Advance rulings may be appealed under the 
procedure of appeal to the superior official  of the entity that issued the rulings. DIAN Resolution 
No. 41 of 11  May 2016 (Articles 6 to 13) lays down the rules for the submission of requests for 
advance rulings.  
3.21.   In the new Customs Statute, the term "customs modalities" has been replaced by "customs  
regimes". In addition to the regimes of importation, exportation and transit, a "customs 
warehousing" regime has been established, under which goods entering the customs territory may 
be stored for a year (renewable for a second year) under customs contro l in a warehouse authorized 
for the purpose, provided they have not been subject to any other customs regime. The declarant 
must present the customs declaration at the place of arrival of the goods and obtain the 
corresponding authorization for the regime.  The customs declaration covers transfer of the goods to 
the authorized warehouse. The covered goods will only become liable for payment of import duties 
and taxes when they are cleared through customs under an import regime that provides for their 
free mo vement.22 No processing operations may be carried out under the warehousing regime.  
                                                
19 Risks associated with the persons involved in the logistics chain; the foreign trade operations; 
enforceable payment obligations; non -fulfilment of tax, customs and foreign -exchange obligations; evasion of 
payment of duties through distortion of the value, o rigin and preferential treatment; economic solvency to 
ensure payment of obligations; and the origin of the funds. Ibid., Article  494. 
20 The types of guarantees that may be lodged are: deposit of money or any other means of payment 
accepted by the DIAN; in surance company guarantees; banking institution guarantees; open promissory note; 
mercantile trust guarantees; endorsement of credit instruments; and any other kind of guarantee stipulated by 
the DIAN.  
21 Decree No.  390, Chapter II, Section II; and DIAN Res olution No.  041 of 11  May 2016.  
22 Decree No.  390 of 7  March  2016, Title VIII.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.22.   There are several regimes for goods transit: customs transit, cabotage and transhipment. 
Goods covered by any of these regimes are not subject to payment of import duties an d taxes.23 
The cabotage and transhipment regimes do not require submission of a customs declaration; the 
operation is carried out using the transport document. Goods under the transit regime may enter 
through any of Colombia's ports of entry, but the DIAN i s empowered to prohibit or restrict access 
on grounds of public safety and health, for sanitary, phytosanitary or environmental reasons, at the 
request of the competent authorities, or where for control reasons it deems it desirable to do so. 
Transit of ar ms, explosives, precursors, drugs or narcotics that have not been authorized by the 
competent authority is not permitted, nor is that of any other good whose import is forbidden by 
law. The transit of goods from a special customs regime zone to the rest of  the national customs 
territory or a free zone is likewise forbidden.  
3.23.   The international customs transit regime allows land transport under customs control of goods 
coming from abroad from one customs post to another, crossing one or several borders of 
neighbouring countries. In the case of transit between Andean Community (CAN) member countries 
the rules of the Cartagena Agreement apply, including the requirement to produce an international 
customs transit declaration (ICTD); in other cases, the rules provi ded for in the trade agreements 
signed by Colombia apply. Article 405 of Decree No.  390 provides that, in any case, Colombia's 
undertakings under Article V of the GATT 1994 and any provisions amending or replacing it must be 
observed. Customs transit opera tions require an electronic security device to be fitted at the 
declarant's cost and may only be carried out by transport companies authorized by the DIAN. In 
addition, a prior requirement for customs transit authorization is that the operations must be co vered 
by cargo guarantees both by the declarant and by the carrier (Article 395 of Decree No.  390).  
3.24.   Decree No.  390 (Article 138) provides for "customs -approved treatment", defined as the 
treatment to be given to goods introduced into the national customs t erritory under customs 
authority. Goods that are at the place of arrival or in temporary warehousing may be subject to one 
of the following types of customs -approved treatment: inclusion in a customs transit regime, 
customs warehouse or import storage faci lities; entry into a free warehouse or free zone; 
destruction; abandonment; or reshipment.  
3.25.   The new Customs Statute also provides for foreign trade operators, i.e. the natural or legal 
persons or branch offices of foreign companies that form or take part di rectly or indirectly in the 
customs -approved treatment, regimes, operations or any other customs formality.24 Operators must 
obtain from the DIAN a Customs Registration, which is the authorization (in the case of persons) or 
approval (in the case of premise s) to carry out customs operations and formalities. For this purpose, 
foreign trade operators must satisfy both general and specific requirements according to their 
activity, and also obtain approval, with a medium or low risk rating, based on the risk man agement 
system. They must also have a record of good behaviour in foreign trade operations and keep an 
up-to-date guarantee. The new regulations also require compliance with measures to prevent and 
control money laundering, the financing of terrorism and t he proliferation of weapons of mass 
destruction.  
3.26.   Decree No.  390 also establishes three categories of special treatment for importers, exporters 
and foreign trade operators who obtain low -risk classifica tion. These categories are: (i)  authorized 
exporter; ( ii) authorized economic operator (OEA); and (iii) trusted importers, exporters and foreign 
trade operators (trusted users). The first two of these are obtained at the request of the interested 
party, while the third is granted ex officio . Each category has  specific requirements25 and benefits; 
the latter are listed below in Table 3.2. The highest classification, having the greatest benefits, is 
the OEA certification, which is based on trust and security in the logistics chain.26 In early 2018 there 
                                                
23 Ibid.,  Article 389.  
24 Foreign trade operators are: customs brokers; international cargo agents; air, maritime or land 
agents; processing and/or assembly industries; official po stal operators or postal service concession holders; 
express delivery operators or express couriers; multimodal transport operators; transporters; users of the 
regime of temporary admission for inward processing; warehouses; entry/exit points for 
importati on/exportation by means of networks or pipelines; Common Control Zones for several ports or docks; 
verification zones for express delivery or courier services; primary areas of airports, ports or docks and border 
crossing points.  
25 The requirements are set  out in Decree No.  390 of 7  March  2016 (Article 34).  
26 Joint resolutions (DIAN, Policía Nacional -ICA) No.  15 of 17  February  2016 and No.  67 of 
20 October  2016 establish the requirements for obtaining OEA certification.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  were 37 OE A-certified operators, of which 5 were importers and the rest exporters, as well as 
23 authorized exporters.  
Table 3.2 Benefits under special treatment categories  
Authorized exporter  Trusted user  Authorized economic operator (OEA)  
Issue origin declarations or 
certify origin in the invoice 
in accordance with 
Colombia's current trade 
agreements  Make consolidated payments for import 
declarations  
 Benefits set out in Decree No.  3.568 of 2011 
and amendments thereto  
Make deferred payments in certain cases  All the benefits for trusted users  
Reduction in the insured value of guarantees  No need to lodge guarantees  
 Lodge a comprehensive guarantee in the 
case of an operator that has obtained more 
than one Customs Registration  Customs clearance of imports in the 
declarant's facilities  
 Lodge a comprehensive guarantee in the 
case of importers and exporters to cover 
various customs obligations  Submit the request for shipment 
authorization at the place of ship ment 
 Declarant may use the abbreviated customs 
clearance procedure (simplified declaration)  Declare goods under the customs 
warehousing regime after completion of 
transit or a special transport operation  
 Inspections carried out in the exporter's 
facilities  50% reduction in the charge payable for 
correcting errors in description  
 Higher quota for exports of samples without 
commercial value (up to US$30,000)  No advance declaration obligation in cases 
where it is required  
 Carry out transit operations without 
restrictions  In the case of warehousing: carry out cargo 
consolidation and deconsolidation, transport 
and customs brokerage activities  
 Guarantee obligations with promissory notes  In the case of customs brokers: carry out 
cargo consolidation and deconsolidation, 
cargo transport and warehousing activities  
 Air carrier: transfer immobilized cargo to 
warehouses at the same arrival point  Reship the goods in any circumstances that 
have involved customs interv ention  
Source:  Article 35 of Decree No.  390 of 7  March  2016.  
3.27.   Another innovation in the Customs Statute is the possibility for foreign trade operators to use 
the specialized logistics infrastructure entities (ILE).27 These are delimited areas where foreign trade 
operators (includi ng warehouses, ports and airports) carry out logistical, transport, handling and 
distribution activities for goods. The DIAN determines the customs operations that may be carried 
out in the ILE in such a way as to integrate them in the logistical corridors  and facilitate trade by 
means of intermodal transport from and to the ports of origin and destination.  
3.28.   Decree No.  390 establishes a new regime of sanctions designed to encourage voluntary 
compliance with obligations through persuasive management. Formal e rrors in customs declarations 
are no longer penalized. The decree also establishes a violation of a general nature that covers all 
obligations and formalities not specifically provided for, as well as a warning for minor infringements 
Goods are only seized  when they are actually different (not for formal errors); and grounds are 
provided for exoneration of responsibility ( force majeure , acts of God, unforeseeable act of a third 
party, computer malfunction, etc.), which was not the case in the previous regul ations. The penalty 
of 200 % when the goods cannot be seized may only be applied following a procedure in which the 
release of the goods is cancelled.28 Another new element is that customs intervention is explicitly 
provided for in cases of violation of inte llectual property rights in foreign trade operations.  
3.29.   The decisions and rulings of the customs authority are subject to applications for internal 
administrative review, appeal or reconsideration, as the case may be, which must be lodged within 
15 working d ays of the notification. A different body from the one that issued the challenged decision 
deals with these applications, in accordance with the DIAN's organizational structure. The period for 
issuing the ruling on an appeal for reconsideration is four mon ths from the day following notification 
of the decision admitting the appeal. There is no further recourse against the ruling on an application 
for reconsideration, and the administrative channel is thus considered to have been exhausted.29 
                                                
27 The ILE were created by Law No.  1.682 of 2013 (Article 12).  
28 The penalty regime is set out in Decree No.  390 of 2016, Title XV. See also DIAN Resolution No.  64 of 
3 October  2016.  
29 Decree No.  390 of 2016, Chapter X.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.1.1.3   Customs valuatio n 
3.30.   Decree No.  390 of 2016 confirms that the applicable rules for customs valuation in Colombia 
comprise, in the following order, the rules of the WTO Agreement on Customs Valuation30, Andean 
Decision No.  571 of 2003 and its Community Regulations, updated thr ough Resolution No.  1.684 of 
23 May 201431 and other related Andean Community rules, and the supplementary national 
regulations.32 The rules also include the instruments of the World Customs Organization (WCO) 
Technical Committee on Valuation. Colombia has submitted to the WTO Committee on Customs 
Valuation the replies to the check -list of issues on implementation and administration of the 
Agreement on Customs Valuation, as well as notifications on changes to its domestic legislation and 
on valuation of carrier media.33 
3.31.   In order to facilitate the application of the valuation rules, Decree No.  390 provides the option 
to issue advance ru lings on value criteria at the request of a party, under a procedure governed by 
Resolution No.  41 of 2016. It also maintains the possibility of rulings for permanent adjustment of 
value, whether ex officio or at the request of a party, as governed by Reso lution No.  72 of 2016. In 
addition, in accordance with Andean Decision No.  571, Decree No.  390 envisages the need to 
develop a database for the purpose of strengthening risk control and management with respect to 
valuation, which will accompany the online submission of the declaration of value through the 
electronic information service for customs valuation that is currently under construction.  
3.32.   Pursuant to CAN Decision No.  571, the customs value of imported goods is determined in 
accordance with the methods  set out in Articles 1 to 7 of the WTO Customs Valuation Agreement 
and its Interpretative Notes. The authorities indicated that the most widely used method for 
determining the taxable base of imported goods is the transaction value, without prejudice to th e 
application, in their order, of the other methods provided for in the Customs Valuation Agreement, 
including the method of last resort for the valuation of special cases.34 
3.33.   Colombia continues to use reference prices as control tools, on an indicative basi s, in case of 
dispute between the customs authority and the declarant concerning the declared value of goods. If 
the dispute arises during the customs clearance of the goods, the latter may be released against 
security lodged by the importer, amounting to the difference between the declared price and the 
reference price. In the subsequent control, if it has not been possible to determine the customs 
value by one of the secondary methods, under the last -resort method the reference price may be 
taken as a rea sonable criterion for valuing the imported good. Reference prices are regularly updated 
by the DIAN. At present, reference prices are applied to 66 products, including agricultural products, 
footwear, clothing, cellular telephones, computers, tyres, bicycl es and vehicles.  
3.34.   In accordance with Decree No.  2.685 of 1999 (Article 128), which is still in force, when the 
customs authority has grounds for doubting the declared value of the good, the declarant, within a 
maximum period of five days, has the following options: submit documents accrediting the declared 
price; lodge a specific insurance company guarantee to cover payment of the import duties and 
taxes that may finally be payable on the imported goods; freely and voluntarily adjust the declared 
price to th e actually negotiated price; or correct the import declaration on the basis of the findings 
set out in the official inspection report of the customs officer.  
3.35.   Decree No.  390 (Article 221) maintains the options of the submission of supplementary 
documents, c orrection of the declaration of value and lodging of a guarantee. However, it introduces 
the following changes: (i) the time -frame for settling the dispute over value is extended to one 
month, which is the storage deadline; (ii) in the case of natural pers ons or high -risk users, the 
specific guarantee must take the form of a bank deposit; (iii) any correction to the declared value 
must be accompanied by the supporting document; and (iv) in no case may the reference prices 
used as a comparison replace the de clared prices. When the declarant has lodged a comprehensive 
                                                
30 Incorporated into Colombian law by Law No.  170 of 1994.  
31 Resolution No.  1.684 replaces Resolutions No.  846 and No.  1.486 of the CAN. The CAN resolutions 
were notified to the WTO in document G/VAL/N/1/COL/3 of 19  November  2014.  
32 The national regulations include Decree No.  2.685 of 1999, its Regulatory Resolution No.  4.240 of 
2000 and Resolutions No.  41 of 2016 and No.  72 of 2016 establishing regulations under Decree No.  390. 
33 WTO documents G/VAL/N/2/COL/2, G/VAL/N/1/COL/2 and G/VAL/N/3/COL/1, all of 7  October  2014.  
34 In Colombia, all the elements listed in Article 8.2 of the Customs Valuation Agreement form part of 
the customs value, regardless of the valuation method used.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  guarantee or has the status of an OEA, release of the goods will be authorized without any 
requirement of the above -mentioned alternatives.  
3.1.2    Rules of origin  
3.36.   The Customs Statute empowers the DIAN to establish provisions for determining the 
non-preferential origin of goods subject to trade defence and other measures.35 To date, Colombia 
has not applied non -preferential rules of origin, but it is currently working on a draft for their 
application. It applies preferential rules of origin under its trade agreements.  
3.37.   Colombia's regulations on rules of origin consist primarily of Decree No.  390 of 2016 
(Articles  155-166 and 599 -600); DIAN Resolutions No.  41 of 11  May 2016 and No.  72 of 
29 November  2016 (Ar ticles 24 -32); and Decree No.  1.351 of 22  August  2016 (supply shortage).  
3.38.   Decree No.  390 (Article 136) provides that, in order to benefit from tariff preferences under 
a trade agreement in force for Colombia, the importer must submit proof of origin support ing the 
originating status of the imported goods. The proof of origin submitted as a supporting document 
for an import declaration must comply with the parameters established or be issued in the format 
provided for in the corresponding agreement. Where the  DIAN issues the proof of origin, a valid 
sworn declaration of origin issued by the producer and other requirements under the corresponding 
trade agreement are required.36 
3.39.   The proof of origin must be obtained prior to the submission and acceptance of the import 
declaration. The importer, producer, exporter or competent body of the exporting country must issue 
the proof of origin in electronic or physical form, as required under the trade agreement in question.37 
3.40.   Generally speaking, the rules of origin provi sions in trade agreements signed by Colombia 
comprise: (i) a core body of rules defining origin criteria, flexibilities, obligations and rights, 
certification and verification of origin; and (ii) specific rules of origin (SROs) establishing specific 
condit ions of production and use of inputs to determine origin. The general criteria conferring origin 
include: goods wholly obtained or produced in the territory of one or more parties to the trade 
agreement; goods wholly produced in the territory of one or mor e parties exclusively from materials 
that qualify as originating; goods in whose production non -originating materials that comply with a 
change in tariff classification are used; and goods that satisfy a regional content value threshold. 
The agreements als o include de minimis and cumulation clauses (the latter may be bilateral, regional 
and expanded). Some agreements include a mechanism for the textiles and clothing sector 
permitting the acquisition of third -country material and inputs deemed to be "in shor t supply", which, 
when incorporated into goods traded between the parties, qualify as originating and are entitled to 
the preferential tariff treatment provided for in the agreement concerned.38 
3.41.   Under most of the agreements signed by Colombia, origin certif ication is carried out through 
a competent authority. Colombia has 12 Sectional Customs Directorates in the country's main cities 
that issue certificates of origin for Colombian exporters.39 Self-certification of origin is allowed under 
the agreements with EFTA, Canada, the United States, the European Union, the Republic of Korea 
and the Northern Triangle (Guatemala, El Salvador and Honduras).  
3.42.   The DIAN may carry out ex officio checks to verify origin as a result of a control programme 
after receiving a compl aint or any other information concerning possible non -compliance with rules 
of origin. The procedures for verifying the origin of imported and exported goods are set out in 
Decree No.  390 (Articles 599 and 600), in accordance with the mechanisms provided f or in the trade 
agreements in force. The authorities have stated that from 2011 to 2017, 98 verifications of origin 
of imported goods were carried out under seven agreements, the origin of which was recognized in 
only six cases. The verifications focused o n the following imported products: cigarettes, chemical 
products, clothing and textiles, bed linen, vehicles, white goods, optical goods, electric generators, 
                                                
35 Article 166 of Decree No.  390 of 2016.  
36 Ibid., Article 159.  
37 Ibid.,  Article 160.  
38 Decree No.  1.351 of 22  August  2016 establishes a procedure for drawing up lists of materials and 
inputs in short supply for the textiles and clothing sector in Colombia.  
39 In 2016, 237,782 certificates of origin were issued; 192,116 had been issued by 30  August  2017.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  palm oil and tyres. In the case of exports, origin verifications focused on flowers (83 %), fruit,  
clothing, biscuits, marine fisheries products and chocolate products.  
3.1.3   Tariffs  
3.1.3.1   Tariff structure and policy  
3.43.   Since 2010, through Decrees No.  4.114 and No.  4.115 of 2010, the Colombian Government 
has been engaged in a Structural Tariff Reform (REA). According  to the authorities, the aim is to 
tackle problems associated with the tariff structure, such as the negative effective protection and 
high tariff dispersion harmful to national competitiveness and exports, which were accentuated by 
changes in the Andean C ommunity rules and the signing of free trade agreements. The REA was a 
response to requests from the private sector, and underwent a series of amendments, through 
Decrees No.  492 of 23  February  2011, No.  511 of 24  February  2011, No.  765 of 17  April 2012, a nd 
No. 882 of 30  April 2012. Tariff cuts were also part of the Productivity and Employment Promotion 
Plan (PIPE) fostered by the National Government through Decrees No.  1.755 of 13  August  2013 and 
No. 1.625 of 14  August 2015.  
3.44.   Decree No.  074 of 23  January  2013 temporarily imposed mixed tariffs on imports of the 
clothing and footwear products classified in HS Chapters 61, 62, 63 and 64. The reason given was 
the high level of technical smuggling by means of under -invoicing. This measure was modified on 
various  occasions, for example by Decrees No.  456 of 28  February  2014 and No.  515 of 
30 March  2016.  
3.45.   With the aim of pursuing measures to prevent and control customs fraud in clothing and 
footwear imports, the Government issued Decrees No.  1.744 and No.  1.745, bot h of 
2 November  2016. Decree No.  1.744 established for one year a tariff of 35 % for footwear and 40 % 
for clothing (maximum bound rates in the WTO). These tariffs are applied when the declared f.o.b. 
prices of imports of these goods are equal to or less tha n the established thresholds. By 
Decree  No. 1.786 of 2  November  2017, the Government extended for two more years the measure 
affecting imports of such goods entering at prices below or equal to the thresholds established in 
the corresponding decree.  
3.46.   Decree s No. 1.744 and No.  1.786 established a 40 % tariff on imports of products classified in 
chapters 61 and 62 of the National Customs Tariff, where the declared f.o.b. price was less than or 
equal to US$10 per gross kg, and a 35 % tariff on imports whose decla red f.o.b. price was lower than 
or equal to: US$6 per pair for imports under HS headings 6401, 6402 and 6404; US$10 per pair for 
imports under heading 6403; and US$7 per pair for imports under heading 6405. In the case of 
imports of HS line 6406.10.00.00, the 35 % tariffs applied when the declared f.o.b. price was less 
than or equal to US$5 per gross kg, while for goods in chapters 61, 62 and 64 from a special customs 
zone or a free zone the provisions of these decrees would apply only when entering the nati onal 
customs territory.  
3.47.   Decree No.  1.745 of 2  November  2016 introduced mechanisms for strengthening the risk 
management system and customs control relating to possible situations of customs fraud affecting 
imports of clothing and footwear, regardless of th e country of origin and/or provenance, where the 
declared f.o.b. price was less than or equal to the threshold established in the Decree. Decree 
No. 2.218 of 27  December  2017 replaced Decree No.  1.745 and widened the range of imports 
covered to include fib res, yarns and woven fabrics (Table 3.3).  
Table 3.3 Price thresholds established in Decree No.  2.218 of 27  December  2017  
Tariff heading  Threshold 
US$/kg gross  
or per pair  
Yarns   
52.05 54.02 55.09 55.10  2.00 
Fibres  1.00 
55.03 55.04 55.05 55.06 55.07   
Woven fabrics   
52.08 52.09 52.10 52.11 52.12 53.09 54.07 54.08 55.12 55.13 55.14 55.15 55.16 56.01 58.01 
58.02 58.03 58.04 58.05 58.06 59.01 59.03 59.06 59.07 59.10 59.11 60.01 60.02 60.03 60.04 
60.05 60.06  2.50 WT/TPR/S/372/Rev.1 • Colombia  
 
- 51 - 
 
  Tariff heading  Threshold 
US$/kg gross  
or per pair  
Clothing   
61.01 61.02 61.13 61.14 62.01 62.02 62.05 62.11  10.0 
61.04 61.10 61.12 62.06  8.0 
61.03 61.05 61.06 61.07 61.08 61.09 61.11 61.15 61.16 61.17 62.03 62.04 62.07 62.08 62.09 
62.12 62.13 62.14 62.15 62.16 62.17  5.0 
Other made up textile articles   
63.01 63.02  2.0 
63.03  1.5 
63.04  4.5 
Footwear   
64.01 64.02 64.04  3.0 
64.03  8.0 
64.05  4.0 
6406.10.00.00  2.0 
Source:  Decree No.  2.218 of 27  December  2017.  
3.48.   Decree No.  2.218 provides that the National Government shall revise the thresholds annually 
or earlier when foreign trade trends warrant doing so. It also provides that, in order to import the 
covered products at a price lower than or equal to the threshold, a number of requirements must be 
satisfied. These include: submission of a c ustoms declaration at least one  month in advance of the 
arrival of the goods in the national customs territory, legalized certification of the supplier abroad, 
list of distributors in Colombia of the imported good, and proof that the value to be declared for t he 
goods to be imported corresponds to the price actually paid or to be paid . In the event of a dispute 
concerning value when the goods are inspected or checked, the importer may obtain their release 
by lodging a guarantee for a value equivalent to 200 % of the difference between the importer's 
declared f.o.b. price and the amount resulting from multiplying the unit threshold price established 
in Decree No.  2.218 by the quantity imported.  
3.1.3.2   MFN tariff features and levels  
3.49.   Colombia applies the Andean countries' Common Tariff Nomenclature (NANDINA), which is 
based on the Harmonized Commodity Description and Coding System (HS). It only uses ad valorem 
tariffs, applied to the c.i.f. value of the goods. As a CAN member, Colombia  implements the Andean 
Price Band System (SAFP), which consists of variable duties calculated on the basis of a reference 
price that is fixed periodically (Section 4.1). The SAFP is used for imports of products classified in 
162 tariff lines, including pal m oil, soya oi l, white rice, white sugar, raw  sugar, pigmeat, barley, 
whole milk, yellow maize, white maize, yellow soya, wheat and chicken cuts.  
3.50.   In 2017, the Colombian tariff contained 7,708 lines at the 2017 HS ten-digit level (Table  3.4). 
The number of tariff lines has increased since the previous trade policy review of Colombia in 2012 
(7,292 lines), partly as a result of the tariff reform and partly owing to changes in the HS. Compared 
with the average tariff rate applied as from 2011, which included t emporary reductions in the rates 
applied to capital goods, the average MFN applied tariff rate rose by 0. 9 percentage points from 
6.2% in August  2011 to 7.1 % in 2017 (7.9 % if the average tariffs under the SAFP are included). 
However, the average tariff in 2017 is 1.1 percentage points lower than the arithmetic mean of 
applied tariffs in the first half of 2011 (8.2 %), when the tariff reform containing permanent tariff 
rates was launched.  
Table 3.4 MFN tariff str ucture, 2011 and 2017  
(%)  
2011 (HS07)  2017a 
(HS17)  2017b(HS17)  
January -
July August - 
December  including 
SAFP  
1. Total number of lines  7,285  7,292  7,708  7,708  
2. Non-ad valorem tariffs (% of tariff lines)  0.0 0.0 0.0 0.0 
3. Non-ad valorem tariffs without ad valorem  
equivalents (AVEs)  (% of tariff lines)  0.0 0.0 0.0 0.0 
4. Tariff quotas (% of tariff lines)  0.1 0.1 0,3 0.3 
5. Zero-rated tariff lines (% of tariff lines)  4.8 47.5 49.7 49.7 
6. Average of lines above 0 (%)  8.6 11.8 14.2 15.7 
7. Arithmetic mean  8.2 6.2 7.1 7.9 
8. Agricultural products (WTO definition)  14.8 14.5 15.4 15.4 
9. Non-agricultural pro ducts (including petroleum, 
WTO definition)  7.2 4.9 5.8 5.8 WT/TPR/S/372/Rev.1 • Colombia  
 
- 52 - 
 
   
2011 (HS07)  2017a 
(HS17)  2017b(HS17)  
January -
July August - 
December  including 
SAFP  
10. National tariff "peaks" (% of tariff lines)b 1.4 1.4 5.0 6.7 
11. International tariff "peaks" (% of tariff lines)c 1.6 1.6 6.2 7.1 
12. Typical global deviation of applied rates  8.6 9.3 10.9 14.3 
13. Bound tariff lines (% of tariff lines)  100.0  100.0  100.0  100.0  
a Excludes the Andean Price Band System (SAFP) and only considers the basic ad valorem part of 
conditional tariffs.  
b Domestic tariff peaks are defined as rates exceeding three times the overall simple average of 
applied rates.  
c International tariff peaks a re defined as rates exceeding 15 %. 
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
3.51.   In 2017, Colombia applied 13 different tariff rates, ranging from 0 % to 98 %. If the price 
bands are taken into account, the number of levels ri ses to 32, ranging from 0 to 174.3 %. The 
maximum applied rate, excluding the SAFP, remains the same as in August  2011. As may be seen 
in Chart 3.1, almost half (49.7 %) of lines were zero -rated, while 12.4 % were subject to a 5 % rate; 
13.2% were subject to a  rate of up to 10 % (13.0 % including the SAFP); 18.6 % (17.7 %) to a rate 
of up to 15 %; and only 6.3 % (7.1%) to a rate exceeding 15 %. 
Chart 3.1 Frequency distribution of tariff rates, 2017  
 
a The total number of  tariff lines is 7,708.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.52.   Colombia affords an average level of protection that is almost three times higher for 
agricultural products (WTO definition) than for non -agricultural products (Table 3.5). The average 
tariff for agricultural products (WTO definition), which in August  2011 was 14.5 %, rose to 15.4 % in 
2017, whereas the average tariff on non -agricultural products rose from 4.9 % to 5.8 %. The highest 
average duties per WTO c ategory continued to be for dairy products, clothing and animals and animal 
products, with tariffs of 55.1 %, 40% and 20.3 %, respectively. The highest tariff in 2017, excluding 
the SAFP, was 98 %, applied to some lines of HS heading 04.02 (concentrated milk and cream). 
Colombia has bound its entire tariff universe in the WTO, although the certified schedule 
(in HS 2012) is not strictly comparable with the tariffs currently applied (HS 2017). The bindings 
range from 0 % to 227 %, with an average bound tariff of 41.2% (90.3 % for agricultural products 
and 34.3 % for non -agricultural products). As between comparable lines, no applied duties above the 
bound rates have been detected.  
49.7%
12.4%13.2%18.6%
1.2%0.0%5.0%49.7%
12.4% 13.0%17.7%
0.3% 0.2%6.6%
05001,0001,5002,0002,5003,0003,5004,0004,500
0% >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%Number of lines excluding SAFP
Number of lines inlcuding SAFPNumber of tariff linesaWT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 3.5 Summary analysis of the MFN t ariff, excluding the Andean Price Band System 
(SAFP) and conditional tariffs, 2017  
Product description  MFN 
Bound tariff 
(range)a 
(%) No. of 
lines  Average 
(%) Average 
incl. SAFP  Range 
(%) Range 
(%) 
SAPF  Coefficient 
of 
variation 
(CV)  
Total  7,708  7.1 7.9 0 - 98 0 -174.3  1.5 (1.8)  0 - 227 
HS 01 -24 1,284  15.6 19.9 0 - 98 0 – 174.3  0.9 (1.2)  15 - 227 
HS 25 -97 6,424  5.4 5.5 0 - 40 0 – 82.5 1.7 (1.7)  0 - 180 
By WTO category    
  
   
Agricultural products  1,053  15.4 20.7 0 - 98 0 – 174.3  1.0 (1.3)  15 - 227 
 - Animals and products 
of animal origin  140 20.3 42.7 5 - 80 5 – 174.3  1.0 (1.3)  70 - 209 
 - Dairy products  36 55.1 63.8 15 - 98 15 - 98 0.7 (0.5)  90 - 159 
 - Fruit and vegetables  304 14.1 14.1 5 - 60 5 - 60 0.7 (0.7)  15 - 178 
 - Coffee and tea  35 12.7 12.7 10 - 15 10 - 15 0.2 (0.2)  70 - 70 
 - Cereals and 
preparations  141 14.4 18.7 5 – 80 5– 82.5 0.8 (0.9)  70 - 195 
 - Oilseeds. oils and fats 
and products thereof  113 13.2 20.2 0 - 20 0 – 38.2 0.4 (0.6)  75 - 227 
 - Sugar and 
confectionery  28 13.9 22.6 5 - 20 5 – 37.1 0.3 (0.5)  90 - 130 
 - Beverages. alcoholic 
liquids and tobacco  71 14.2 14.2 5 - 15 5 - 15 0.1 (0.1)  70 - 137 
 - Cotton  8 5.0 5.0 5 - 5 5 - 5 0.0 (0.0)  70 - 99 
 - Other agricultural 
products n.e.s.  177 9.9 12.5 0 - 70 0 – 82.5 0.9 (1.2)  35 - 151 
Non-agricultural products 
(including petroleum)  6,655  5.8 5.8 0 - 40 0 - 40 1.6 0 - 104 
 - Non-agricultural 
products (excluding 
petroleum)  6,624  5.9 5.9 0 - 40 0 - 40 1.6 0 - 104 
 - - Fish and fishery 
products  316 14.0 14.2 0 - 15 0 - 15 0.2 35 - 104 
 - - Mineral products and 
metals  1,120  2.7 2.7 0 - 15 0 - 15 1.7 17.5 - 35 
 - - Chemicals and 
photographic goods  1,596  1.9 1.9 0 - 15 0 - 15 2.0 0 - 70 
 - - Wood, wood pulp, 
paper and furniture  372 5.2 5.2 0 - 15 0 - 15 1.2 35 - 35 
 - - Textiles  698 6.1 6.1 0 - 35 0 - 35 1.0 35 - 40 
 - - Clothing  255 40.0 40.0 40 - 40 40 - 40 0.0 40 - 40 
 - - Leather. rubber. 
footwear and travel 
goods  208 8.8 8.8 0 - 35 0 - 35 1.3 30 - 35 
 - - Non-electrical 
machinery  804 2.0 2.0 0 - 15 0 - 15 2.0 0 - 35 
 - - Electrical machinery  425 3.4 3.4 0 - 15 0 - 15 1.5 0 - 35 
 - - Transport equipment  258 11.4 11.4 0 - 35 0 - 35 1.1 35 - 40 
 - - Non-agricultural 
products n.e.s.  572 7.0 7.0 0 - 15 0 - 15 1.0 0 - 40 
 - Petroleum  31 1.6 1.6 0 - 5 0 - 5 1.4 35 - 35 
By ISIC sectorb   
  
   
Agriculture and fishing  524 10.5 10.5 0 - 80 0 - 80 0.6 20 - 194 
Mining  109 1.0 1.0 0 - 5 0 - 5 2.0 35 - 35 
Manufacturing  7,074  7.0 7.0 0 - 98 0 - 98 1.6 0 - 227 
By HS section    
  
   
01 Live animals and 
animal products  470 19.0 19.0 0 - 98 0 - 98 1.0 35 - 209 
02 Vegetable products  435 13.1 13.1 5 - 80 5 - 80 0.8 15 - 195 
03 Fats and oils  66 15.5 15.5 5 - 20 5 - 20 0.3 75 - 227 
04 Prepared foodstuffs, 
etc. 313 14.1 14.1 5 - 20 5 - 20 0.2 35 - 151 
05 Mineral products  198 0.9 0.9 0 - 5 0 - 5 2.1 35 - 35 
06 Products of the 
chemical or allied 
industries  1,493  1.7 1.7 0 - 20 0 - 20 2.1 0 - 180 
07 Plastic and rubber  315 4.8 4.8 0 - 15 0 - 15 1.1 30 - 35 
08 Raw hides and skins  78 7.2 7.2 0 - 15 0 - 15 0.9 35 - 70 
09 Wood and  articles of 
wood  145 3.4 3.4 0 - 15 0 - 15 1.5 35 - 35 
10 Pulp of wood, paper, 
etc. 196 5.5 5.5 0 - 15 0 - 15 1.1 35 - 35 
11 Textiles and textile 
articles  941 15.1 15.1 0 - 40 0 - 40 1.1 35 - 99 
12 Footwear, hats and 
other headgear  55 22.7 22.7 0 - 35 0 - 35 0.6 35 - 40 
13 Articles of stone  169 3.8 3.8 0 - 15 0 - 15 1.4 17.5 - 35 WT/TPR/S/372/Rev.1 • Colombia  
 
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  Product description  MFN 
Bound tariff 
(range)a 
(%) No. of 
lines  Average 
(%) Average 
incl. SAFP  Range 
(%) Range 
(%) 
SAPF  Coefficient 
of 
variation 
(CV)  
14 Precious stones, etc.  59 3.2 3.2 0 - 15 0 - 15 1.9 35 - 35 
15 Base metals and 
articles of base metal  721 3.1 3.1 0 - 15 0 - 15 1.5 35 - 35 
16 Machinery and 
mechanical appliances  1,253  2.5 2.5 0 - 15 0 - 15 1.8 0 - 35 
17 Transport equipment  270 11.1 11.1 0 - 35 0 - 35 1.2 35 - 40 
18 Precision instruments  281 2.5 2.5 0 - 15 0 - 15 1.6 0 - 40 
19 Arms and ammunition  69 14.9 14.9 10 - 15 10 - 15 0.0 35 - 35 
20 Miscellaneous 
manufactured articles  174 12.2 12.2 0 - 15 0 - 15 0.4 35 - 40 
21 Works of art, etc.  7 15.0 15.0 15 - 15 15 - 15 0.0 35 - 35 
By stage of processing    
  
   
First stage of processing  990 9.0 9.0 0 - 80 0 - 80 1.1 15 - 194 
Semi-processed products  2,540  2.6 2.6 0 - 20 0 - 20 1.7 0 - 195 
Fully processed products  4,178  9.4 9.4 0 - 98 0 - 98 1.4 0 - 227 
a The bound tariff is in the HS2012 nomenclature and the applied tariff in the HS2017 nomenclature; 
hence differences in the number of lines  included in the analysis.  
b ISIC (Rev.2). excluding electricity (one line).  
Note:  This analysis only considers the basic ad valorem part of the conditional tariffs.  
Source:  WTO Secretariat estimates, based on data supplied by the authorities.  
3.53.   The applied tariff shows signs of escalation according to the degree of processing between 
semi-processed and finished goods. This is chiefly the case for products for which there is a domestic 
industry. The exceptions are capital goods not produced in the Andean subr egion, which are often 
duty free. Imports of raw materials are subject to a higher average duty than semi -processed 
products.  
3.1.3.3   Tariff quotas  
3.54.   Colombia did not use WTO tariff quotas during the review period, as the applied tariff is lower 
than the in -quota tariff. Colombia applies preferential quotas to agricultural products under its trade 
agreements (Section 4.1). It has a Government Mechanism for Administering Agricultural Quotas 
(MAC), created by Decree No.  430 of 2004, which consists in allocating an im port quota with a 
preferential tariff for certain agricultural products such as yellow flint maize, white flint maize, rice, 
sorghum, soybeans and cotton.40 The condition is that the imports should come from countries that 
are not CAN members and that the i mporter should also purchase a specified quantity of the 
domestic output by public auction through the Colombian Commodities Exchange (BMC). This 
mechanism was not activated during the review period.  
3.1.3.4   Preferential tariffs  
3.55.   Colombia grants preferential treatm ent to imports from its CAN trading partners 
(the Plurinational State of Bolivia, Ecuador and Peru), provided they fulfil the Andean Community's 
origin requirements. It also grants preferential treatment to imports from countries with which it has 
signed agreements in the LAIA framework and under other bilateral agreements (Section 2). During 
the review period, FTAs were signed and came into force with Canada, the Republic of Korea, 
Costa  Rica, the United States and the European Union, and a new LAIA Parti al Scope Agreement 
was signed with the Bolivarian Republic of Venezuela.  
3.56.   The average preferential tariff applied per country varies from 0.2 % for its Andean Community 
partners to 4.6 % for CARICOM member countries, and 6.3 % for Nicaragua. The preferential t ariffs 
applied on agricultural products are generally higher than those applied to non -agricultural products, 
except in the case of CAN countries (Table 3.6).  
                                                
40 Decree No.  430 of 2004.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 3.6 Summary analysis of preferential tariffs , 2017  
 
Preferential 
lines 
(% of total 
tariff lines)  Total  WTO categories  
Agricultural products  Non-agricultural 
products 
(excl.  petroleum)  
Average  
(%) Duty -free 
lines  
(%) Average  
(%) Duty -free 
lines  
(%) Average  
(%) Duty -free 
lines  
(%) 
MFN  
7.1 49.7 15.4 0.6 5.8 57.4 
Regional agreements  
CARICOM  17.5 4.4 61.1 8.9 41.2 3.8 64.0 
Andean 
Community  74.9 0.3 97.8 0.8 96.2 0.2 98.0 
Northern 
Triangle of 
Central America         
El Salvador  73.3 3.7 71.9 9.1 48.2 2.9 75.4 
Guatemala  73.4 3.6 72.0 9.1 47.7 2.8 75.5 
Honduras  85.7 2.5 80.7 8.5 48.7 1.6 85.5 
LAIA agreements  
Argentina  98.1 2.1 55.2 5.0 43.8 1.6 56.8 
Brazil  99.6 2.2 59.7 5.0 41.7 1.8 62.3 
Chile 98.7 0.4 97.1 2.9 81.4 0.0 99.6 
Cuba 82.2 4.5 53.9 10.7 14.7 3.6 59.8 
Mexico  97.7 0.9 94.8 6.2 64.3 0.1 99.4 
Paraguay  99.6 1.3 57.6 4.1 40.6 0.9 60.1 
Uruguay  97,2 1.7 60.8 5.3 42.5 1.2 63.4 
Venezuela, 
Bolivarian Rep. 
of 97.3 2.4 83.8 10.6 36.4 1.1 91.4 
Bilateral agreements  
Canada  97.0 1.2 87.5 5.9 64.2 0.5 91.3 
Korea  97.0 4.3 66.3 9.5 54.1 3.4 68.2 
Costa Rica  96.7 3.6 72.6 12.8 52.8 2.1 75.7 
United States  96.7 0.9 87.8 1.6 90.5 0.8 87.5 
European Union  96.7 2.1 74.1 7.1 55.1 1.3 77.3 
Pacific Alliance  
Chile-Peru 96.7 0.4 96.7 3.1 76.2 0.0 100.0  
Mexico  96.7 0.6 96.4 4.5 73.8 0.0 100.0  
a The 2017 MFN tariff includes 7,708 tariff lines.  
Source:  WTO Secretariat estimates, based on data provided by the Colombian authorities.  
3.1.3.5   Tariff concessions  
3.57.   Colombia offers two kinds of tariff concessions; the first type is based on the export or import 
regime, and the second is designed to promote specific sectors of the Colombian economy. The first 
group includes the various export promotion programmes (Special Import -Export Systems, 
Free Zones and Special Economic Export Zones and the various import mo dalities or customs 
regimes, such as the temporary admission regime. These regimes provide for suspension of the 
payment of duties and other taxes on goods imports under certain conditions. With regard to the 
tariff concessions included in the second group , between 2011 and 2017 the Government granted 
concessions to various sectors such as the automotive sector, industry in general, and the agriculture 
and livestock sector.  
3.58.   With regard to the concessions granted to the automotive sector, by Decree No.  2.910  of 
17 December  2013, as amended by Decree No.  1.567 of 31  July 2015, the Government established 
an Automotive Industry Promotion Programme (PROFIA) under which certain goods may be imported 
duty free with the commitment to include them in the production o f vehicles or vehicle parts for sale 
on the domestic market or abroad. Tariff concessions are also offered to promote the importation 
and use of clean -technology vehicles (hybrid and electric). Decrees No.  2.658 of 29  July 2011, 
No. 4.931 of 29  December  2011, No.  2.909 of 17  December  2013, and No.  1.116 of 29  June 2017 
contain measures along the same lines, consisting of establishing preferential tariff quotas for 
imports of vehicles of this kind as well as chassis and electric charging systems.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.59.   During the review period, the Government also granted temporary tariff reductions to 0 % for 
imports of agricultural chemicals classified in HS Chapter 31 (fertilizers) and subheading 3808 
(pesticides) for which there is no registered domestic production. These advant ages are granted 
under Decrees No.  2.052 of 13  June 2011, No.  1.989 of 12  September  2013 and No.  2.180 of 
11 November  2015. In addition, for a two -year period, under Decree No.  1.280 of 31  July 2017 the 
Government granted a tariff reduction to 0 % for impor ts of used agricultural machinery at least one 
year old and at most seven years old. To encourage investment in hydrocarbons and mining, through 
Decrees No.  562 of 2  March  2011 and No.  1.570 of 13  May 2011 the Government extended until 
2015 the duty -free c oncessions granted under Decrees No.  4.114 and No.  4.115 of 2010 for a group 
of tariff lines.  
3.60.   By means of Decrees No.  2.916 and No.  2.917 of 12  August  2011 and Decree No.  1.703 of 
15 August  2012, the Government pursued its policy of temporarily reducing ta riffs to 0 % on raw 
materials and capital goods not included in the domestic production register. These tariff reductions 
were subsequently again prolonged, for two years in each case, by Decrees No.  1.755 of 
13 August  2013 and No.  1.625 of 14  August  2015. Thereafter, under Decree No.  1.343 of 
11 August  2017 the tariff reduction to 0 % for raw materials and capital goods not included in the 
national production register was made permanent.41 
3.61.   Given the insufficient level of domestic cotton production and in orde r to boost the textiles 
and clothing sector, through Decrees No.  2.530 of 12  December  2014 and No.  1.347 of 
22 August  2016 the Government temporarily authorized the use of zero tariff quotas on cotton 
imports for a specified number of tonnes according to i ndustry needs. Likewise, under Decree 
No. 1.573 of 25  July 2012 the tariff applied to polyester fibres of less than 1.7 decitex, in HS tariff 
line 5503.20.00.9142, was permanently reduced to zero.  
3.62.   During the review period, the authorities have used temporar y tariff reductions on various 
occasions in response to supply shortfalls, to counter inflation or to address special circumstances. 
For example, Decrees No.  2.021 of 2  October  2012 and No.  927 of 9  May 2013 temporarily 
established a 0 % duty on imports of whole and frozen tuna fish. This duty relief was still in force in 
October  2017 under Decrees No.  1.755 of 2013 and No.  1.625 of 2015. Decree No.  2.049 of 
13 June 2011 authorized a tariff reduction to 0 % for the importation of 20 used truck -cranes 
intended  for the National Highway Safety Programme. Similarly, Decree No.  1.571 of 13  May 2011 
and Decree No.  1.750 of 26  May 2011 authorized zero rating for imports of pumps, machinery and 
equipment in order to increase their availability to deal with the damage caused by the harsh winter 
weather that had damaged the country's road infrastructure. Decrees No.  2.050 of 13  June 2011 
and No.  2.230 of 24  November  2015 authorized the import of warships at zero duty. More recently, 
Decree No.  343 of 29  February  2016 red uced to zero, until 30  June 2016, the duty on imports of 
certain agricultural products such as lentils, beans and garlic, in order to counter the latent 
inflationary expectations in the country at the time. The same Decree recommended suspending the 
applic ation of the SAFP for imports of oils and established a 0 % duty for a six -month period. Finally, 
in response to the country's energy crisis and to reduce consumption of electricity, through Decree 
No. 588 of 11  April 2016 the Government permanently reduced  to 0% the duty applied to imports 
of LED lamps.  
3.1.4    Other charges on imports  
3.1.4.1   Value added tax (VAT)  
3.63.   Value added tax (or "sales tax" in Colombia) is charged on domestic and imported goods (both 
movable and immovable), services provided in Colombia or from abro ad, and the sale or transfer of 
rights on intangible assets related to industrial property. For imported goods, the taxable base is the 
customs value plus import duties (tariffs). However, in the specific case of beer, VAT is charged on 
the "retail price",  which is calculated differently depending on whether the beer is produced in 
Colombia or imported. The retail price of domestically produced beer is the price invoiced to the 
distributor, whereas the retail price of imported beer is the customs value, inc luding tariffs, plus a 
                                                
41 The list of these products is periodically revised, and a product may be removed from the list if 
domestic production begins.  
42 This tariff line also has a 0 % duty as a result of the exemptions granted for raw mater ials and capital 
goods not included in the national production register.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  30% marketing margin.43 This situation could lead to a difference in the incidence of VAT applied to 
domestic and imported beer.  
3.64.   Law No.  N° 1.819 of 29  December  2016 (Structural Tax Reform) raised the general rate of 
VAT from 16 % to 19% as from 1  February  2017. In addition to the general rate, there is a 5 % rate 
and also a 0 % rate that is applied to some basic foods and services in the household basket. Some 
goods are exempt from VAT (for example, live animals and plants, honey, maize, sugar cane, certain 
seeds, certain medicines, used tyres for agricultural vehicles, tractors , etc.), as are certain services 
(medical services, land transport under certain conditions, educational services, public electricity, 
water and sewerage services).  
3.65.   Imports of certain types of machinery and equipment not produced in Colombia are excluded 
from payment of VAT. This is also the case for products imported under special import -export 
programmes (Plan Vallejo) and other types of goods (Table  3.7). In order to obtain relief from VAT 
on certain types of machinery44, the importer must apply through t he VUCE for a certificate from 
the MinCIT  (Domestic Goods Registration Group). During the review period, goods delivered by 
express delivery or courier of a value not exceeding US$200 were added to the list of imports 
excluded from payment of VAT. In addit ion, imports of beer in the San Andrés, Providencia and 
Santa Catalina Archipelago and imports of consumer goods from enterprises established in Leticia 
(Amazonas Department) are exempted from VAT payment (i.e. zero rated) (Tax Statute, 
Article  475).  
Table  3.7 VAT-exempt imports  
VAT-exempt imports  
Materials to be processed under special import and export programmes or Plan Vallejo  
Articles intended for use by the official foreign diplomatic or consular service and foreign technical missions in accordance 
with legal provisions on diplomatic reciprocitya 
Arms and ammunition for national defence  
Temporary imports of heavy machinery for basic industriesb, provided they are not produced in Colombia  
Machine ry or equipment, provided they are not produced in Colombia, for the recycling and processing of garbage or 
waste, and for purifying or treating waste water, atmospheric emissions or solid wastes, provided they form part of a 
programme approved by the Mini stry of the Environment. Equipment for environmental control and monitoring, including 
that needed to comply with the Montreal Protocol  
Industrial machinery not produced in Colombia intended for use in the processing of raw materials, when imported by hig h 
export users (ALTEX).c This exclusion will be applicable to Authorized Economic Operators after a period of 4 years from 
the entry into force of Decree No.  390 
Goods and equipment under conventions, treaties or international agreements destined for the national Government or 
national public -law entities, excluding State industrial and commercial firms and semi -public companies  
Goods that are delivered by express delivery or courier of a value not exceeding US$200 as from 1  January  2017 
Equipment import ed by research or technological development centres and educational institutions recognized by the 
Ministry of Education and intended for scientific, technological or innovation projects, meeting the criteria of the National  
Council on Tax Benefits for Sci ence, Technology and Innovation  
a The exemptions for vehicles are non -transferable within the year following their importation.  
b Mining, hydrocarbons, heavy chemicals, iron and steel, extractive metallurgy, electricity generation 
and distribution, and ca tchment, purification and transport of water.  
c ALTEX users must export 30 % of their annual sales by value and the imported machinery must 
remain in their ownership throughout its useful life. Non -compliance is sanctioned by the levying of 
the unpaid VAT p lus outstanding interest and a fine of 5 % of the f.o.b. value of the imported 
machinery.  
Source:  Tax Statute, Articles 428 and 428 -1. Viewed at http://www.dian.co . 
3.1.4.2   Other taxes  
3.66.   Colombia also taxes the consumption of certain products, both imported and domestic, such 
as beer and alcoholic beverages; cigars and tobacco; petrol (gasoline) and other fuels; certain motor 
vehicles and motorcycles; yachts and other boats; plastic bags; and fossil fuels according to their 
carbon content.  
3.67.   Under Law No.  223 of 1995, taxes are levied on the consumption of beer, aerated waters, 
shandies and mixtures of alcoholic and non -alcoholic beverages; spirits, wines, aperitifs and the like; 
                                                
43 Tax Statute (Article 475) and Law No.  223 of 1995 (Article 189).  
44 Heavy machinery for mining, hydrocarbons, metal working, heavy chemicals and electricity 
generation activities; ma chinery intended for the processing of raw materials for the ALTEX companies; and 
machinery intended for environmental improvement. Tax Statute (Article 428).  WT/TPR/S/372/Rev.1 • Colombia  
 
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  and cigarettes and manufactured tobacco.45 The excis e tax on spirits and tobacco is applied at the 
departmental level, whereas the excise tax on beer is applied nationally.  
3.68.   The tax base of the excise tax on beer, aerated waters, shandies and mixtures of alcoholic 
and non -alcoholic beverages differs accordin g to whether it is a domestic or imported product. In 
the case of domestic products, the tax base is the retail price, whereas in the case of imported 
products it is the sum of the customs value plus duties plus a 30 % marketing margin. Furthermore, 
Law No.  223 provides that the tax paid by foreign products may never be lower than the average 
tax paid by domestically produced products.46 In order to implement this provision, the 
Finance  Ministry's Directorate -General of Fiscal Support issues every six months,  through a 
"certification", the weighted averages of the excise tax on domestically produced beers, aerated 
waters, shandies and mixtures that are applicable as the minimum for imported products.47 The 
applicable rate is shown in Table 3.8.  
Table 3.8 Excise tax on beer, aerated waters, shandies and mixtures  
Products  Tax base  Rate 
Beers and aerated waters  
Domestic  Retail price  48% 
Imported  Customs value + applicable tax + 30% marketing margin  48% 
Shandies and mixtures  
Domestic  Retail price  20% 
Imported  Customs value + applicable tariff + 30% marketing margin  20% 
Source:  Law No.  223 of 1995.  
3.69.   Law No.  1.816 of 19  December  2016 introduced a significant change in the regime governing 
excise tax on spirits, wines, aperitifs and the like, by eliminating the de facto discrimination that 
resulted from the application of a higher tax for beverages with  an alcoholic strength of over 35° 
(mostly imported beverages) than for those with a lower alcoholic strength such as locally produced 
aguardiente. The new structure of excise tax has two elements: (a) a specific flat -rate component 
of Col$220 per degree o f alcohol; and (b) an ad valorem  component of 25 % on the retail price before 
excise tax. The tax base of the ad valorem  component is calculated and established each year by 
the National Administrative Department of Statistics (DANE), taking into account the prices at which 
each alcoholic beverage is sold in the market.48 Another change was that the VAT was separated 
from th e calculation of the excise tax on alcoholic beverages, which enabled producers to deduct the 
VAT paid on inputs. The excise tax on wine has a similar structure, with lower rates (Table 3.9).  
3.70.   In the case of cigarettes and manufactured tobacco, the excise t ax again has a specific 
component and an ad valorem component (surtax49). Law No.  1.819 of 2016 raised the specific 
component for cigarettes and tobacco to Col$1,400 per pack of 20 cigarettes and Col$90 per gram 
of rolling tobacco or snuff for 2017 (Col$2,1 00 and Col$167, respectively, for 2018). The ad valorem  
component is set at 10 % of the retail price certified every six months by the DANE for cigarettes50 
and 10 % of the amount of excise tax per gram of rolling tobacco (Table 3.9).  
                                                
45 Law No.  223 of 1995, Chapters VII, VIII and IX, and amendments thereto.  
46 Article 189 of Law No . 223 of 1995. See also Judgment C -412/96 of the Constitutional Court of 
Colombia. Viewed  at: http://www.corteconstitucional.gov.co/relatoria/1996/C -412-96.htm . 
47 Article 4 o f Decree No.  2.141 of 1996.  
48 The DANE publishes annually the list of certified prices for the various alcoholic beverages solely for 
the purposes of determining the excise tax; prices are fixed freely by producers and distributors. Online 
information from  the DANE, viewed at: 
http://www.dane.gov.co/files/investigaciones/boletines/cigallo/certificacion -cigarrillo -II-semestre -2017.pdf . 
49 The consumption surtax for cigarettes and tobacco was created by Law No.  1.393 of 2010.  
50 Online information from the DANE, viewed at: 
http://www.dane.gov.co/files/investigaciones/boletines/cigallo/certificacion -cigarrillo -II-semestre -2017.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 3.9 Rates of excise tax on alcoholic beverages and tobacco, 2017  
Product  Specific component  Ad valorem component  
Spirits, wines, aperitifs and the like  
Spirits, aperitifs and the like  Col$220 per degree of alcohol in 750 cc 
unit 25% on retail price  
Wines and wine -based aperitifs  Col$150 per degree of alcohol in 750 cc 
unit  20% on retail price  
Cigarettes and manufactured tobacco  
Cigarettes, tobacco, cigars and 
cigarillos  Col$1,400 per pack of 20 units  10% of retail price  
Rolling tobacco  Col$90 per gram  10% of the excise tax  
Source:  Law No.  1.816 of 2016 (Articles 19 and 20) and Law No.  1.819 of 2016 (Articles 347 and 348).  
3.71.   During the review period, a "national excise tax" was established on the supply or sale to the 
final consumer or importation by the final consumer of specific goods and services.51 Law No.  1.819 
of 2016 establishes that the national excise tax is charged on: the sale of certain domestically 
produced or imported vehicles; the supply of mobile telephon y, Internet and mobile navigation 
services; and the serving of food and beverages (restaurants, cafeterias, self -service 
establishments, etc.). The law also introduced national excise tax on the supply of plastic bags (by 
commercial establishments) and the  sale of cannabis -based products. The national excise tax is 
levied throughout the country (with the exception of the Amazonas department and the San  Andrés, 
Providencia and Santa Catalina Archipelago). The current rates of the national excise tax are show n 
in Table 3.10.  
3.72.   There is also a national tax on petrol (gasoline) (INGA) and engine fuel oils (ACPM), whether 
domestic or imported52, in the form of a specific tax levied per gallon. Law No.  1.819 of 2016 
excludes the sale of biofuels from this tax, as wel l as marine diesel and fuels used for refuelling ships 
in international traffic, as this operation is considered an export.53 The Law also established the rates 
of tax in force since 1  January  2017, which are considerably lower than the rates during the pre vious 
review period, apparently reflecting the fall in oil prices. In addition, domestic and imported petrol 
and ACPM are subject to a consumption surtax whose base is the reference retail price established 
and certified monthly by the Ministry of Mining a nd Energy (Table  3.11).  
Table 3.10 National excise tax, 2017  
Products and services  Rates  
Family cars and camper vehicles with an f.o.b. value or equivalent less than US$30,000 
including their accessoriesa 8% 
Family cars, camper vehicles and pick -up trucks with an f.o.b. value or the equivalent equal to 
or more than US$30,000, with their accessoriesa 16% 
Pick-up trucks with an f.o.b. value or the equivalent of less than US$30,000, with their 
accessoriesb 8% 
Pick-up trucks with an f.o.b. value or the equivalent equal to or more than US$30,000, with their 
accessoriesb 16% 
Motorcycles with reciprocating internal combustion piston engine of a cylinder capacity 
exceeding 200  c.c. 8% 
Yachts and other vessels for pleasure or sports; rowing boats and canoes  8% 
Balloons and dirigibles; gliders and other non -powered aircraft, for private use  16% 
Other aircraft (helicopters, aeroplanes); space vehicles (including satellites) and their launch 
vehicles and suborbital vehicles for private use  16% 
Mobile telephony, Internet and mobile navigationc 4% 
Food and beverage services (restaurants, cafeterias, etc.)  8% 
                                                
51 The "national excise tax" was established by Law. No.  1.607 of 2012 (Articles 71 to 83).  
52 Article 58 of Law No.  223 of 1995.  
53 Article 218 o f Law No.  1.819 of 2016.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Products and services  Rates  
Psychoactive and non -psychoactive cannabis products  16% 
Plastic bagsd (other than reusable or biodegradable)  Col$20 per bag  
a The equivalent value of the f.o.b. value for motor cars and camper vehicles assembled or produced 
in Colombia is the average f.o.b. value given in the export declarations of vehicles of the same 
make, model and specifications, exported during the six -month period immediately preceding the 
sale. Does not apply to used vehicles over 4 years old.  
b Motor vehicles classified in heading 87.04 of the Customs Tariff, with a maximum load capacity not 
exceeding 10,000 US pounds, intended primaril y for the transport of goods.  
c Telephony, data, Internet and mobile navigation services are taxed at a rate of 4 % on the entire 
service, not including sales tax. Tax is payable only on consumption in excess of Col$45,000 
per month.  
d This tax will be rais ed to: Col$30 in 2018, Col$40 in 2019 and Col$50 in 2020 per bag.  
Source:  Law No.  1.819 of December  2016.  
Table 3.11 National tax on petrol (gasoline) and engine fuel oils (ACPM), 2017  
Product  Ratea Surtax  
"Regular" petrol  Col$490 per gallon  25% 
Premium -grade petrol  Col$930 per gallon  25% 
ACPMb  Col$469 per gallon  6% 
Other petrol, other than premium  Col$490 per gallon  6% 
a The rates will be adjusted as from February  2018 on the basis of the reported inflation for the 
previous year.  
b ACPM fuel oils include: combustible engine fuel oils, marine diesel, gas oil, intersol , No. 2 diesel, fuel 
for electric generators or any middle distillates and/or emulsified oils.  
Source:  Law No.  1.819 of 2016, and onlin e information from the District Finance Secretariat of Bogotá, 
viewed at: http://www.shd.gov.co . 
3.73.   Colombia also levies a national carbon tax, introduced by Law No.  1.819 of 2016, on the sale, 
withdrawal and import of f ossil fuels according to their carbon content, including all petroleum 
derivatives and all types of fossil gas used for energy purposes, provided they are used for 
combustion. The sale of marine diesel and fuels used for refuelling ships in international t raffic are 
excluded, as this operation is considered an export. This is a specific tax which takes into account 
carbon dioxide (CO2) emissions, corresponding to Col$15,000 per tonne of CO2; the values per unit 
according to the type of fuel are shown in Tab le 3.12. The resources collected go to the Fund for 
Environmental Sustainability and Sustainable Rural Development in conflict -affected areas.  
Table 3.12 National carbon tax, 2017  
Product  Rate/unit  Unit 
Natural gasa Col$29  cubic metre  
Liquid petroleum gasb Col$95  gallon  
Gasoline  Col$135  gallon  
Kerosene and jet fuel  Col$148  gallon  
ACPM  Col$152  gallon  
Fuel oil  Col$177  gallon  
a The tax is only levied on sale to the hydrocarbon refining and petrochemicals industry.  
b The tax is only levied on sales to industrial users.  
Source:  Articles 221 to 223 of Law No.  1.819 of 2016, implemented by Decree No.  1.625 of 2016.  
3.1.5    Import prohibitions, restrictions and licensing  
3.1.5.1   Import prohibitions  
3.74.   Colombia pro hibits the importation of certain goods on grounds of national security, public 
health or morals, and environmental conservation, and to fulfil commitments under international 
agreements such as the Montreal Protocol of 1997. In particular, there is a ban on the importation 
of chemical, biological and nuclear weapons; nuclear and toxic waste; war toys; products containing 
ozone -depleting substances; and pornographic material. The Government can also impose 
temporary import bans to eliminate risks that could  affect human, animal and plant health.  WT/TPR/S/372/Rev.1 • Colombia  
 
- 61 - 
 
  3.1.5.2   Licences, registration and other requirements  
3.75.   Colombia applies an automatic licensing system, known as "free importation", under which 
import registration is required for a considerable number of tariff lines; and a non-automatic 
licensing system under which a licence must be obtained prior to importation.54 Licensing and 
registration requirements apply irrespective of the origin of the product in question.  
3.76.   During the review period, Decree No.  925 of 9  May 2013 was iss ued, establishing the goods, 
conditions and requirements for the import licensing and registration procedures, which are carried 
out online through the VUCE. Decree No.  925 has been notified to the WTO.55 At the time of writing 
of this report, Colombia had submitted replies to the questionnaire on import licensing procedures 
for the years 2013 and 201556 as well as replies to th e questions posed by the United  States.57 
3.1.5.2.1   Automatic licensing  
3.77.   Automatic import li censing or import registration is used to ensure that the goods to be 
imported comply with the requirements, permits or prior authorizations (health certificates, 
phytosanitary and zoosanitary certificates, technical regulations, environmental regulations,  etc.) 
imposed by control entities.  
3.78.   Article 25 of Decree No.  925 of 2013 establishes the goods that must comply with 
requirements, permits and authorizations to be fulfilled or obtained for the import registration to be 
approved. They are: (i) fishery and aquaculture products; (ii) private surveillance and security 
equipment; (iii) radioactive isotopes and radioactive materials; (iv) clothing for exclusive use by law 
enforcement agencies; (v) hydrocarbons and petrol; and (vi) products subject to sanitary co ntrols, 
technical regulations, dynamic test emission certification, vehicle type -approval, and controls to 
ensure environmental protection under international treaties or pursuant to national policies; quotas 
established under international treaties and ag reements or for reasons of trade policy; and 
quantitative safeguard quotas. MinCIT  Circular No.  37 of 29  December  2016 lists over 6,000 tariff 
lines subject to prior import requirements, permits or authorizations imposed by control entities.  
3.79.   Automatic licences may be applied for at any time of the year and must be processed through 
the VUCE before the import declaration is submitted. If the applicant fulfils the requirements, the 
entities participating in the VUCE must issue the authorization with in two  working days. The MinCIT  
Foreign Trade Directorate is the authority responsible for deciding at last instance on import 
registration applications, and must do so within 12 working hours. In practice, these licences are 
issued within the space of one day o n average and cost roughly US$15. Automatic licences or import 
registrations are valid for six months from their date of issuance, and can be extended for a further 
six months. In the case of licences to import capital goods, the validity is 12 months, whi ch can be 
extended for su ccessive periods of up to three  months each, without exceeding 12 months.  
3.1.5.2.2    Non-automatic licensing  
3.80.   Non-automatic import licences (or prior licences) apply to goods of a kind that need special 
import controls on the basis of criteri a laid down by the National Government. It should be noted 
that the Government maintains the exclusive right to import raw materials for explosives, weapons 
and in general goods for the exclusive use of the armed forces.58 
3.81.   Article 14 of Decree No.  925 of 20 13 lists the imports that are subject to prior (non -automatic) 
licensing, namely: (a) products that the Higher Council for Foreign Trade has included in this regime 
as listed in Annex 1 of that Decree; (b) remaindered goods; (c) products subject to special  market 
conditions; (d) goods for which duty -free treatment is requested; (e)  products controlled by the 
National Narcotic Drugs Fund (FNE), the National Narcotic Drugs Council (CNE) of the Ministry of 
Justice and Law, and the Defence Industry (INDUMIL); ( f) goods for national security and defence 
                                                
54 The legal basis for import licensing consists of Decree Law No.  444 of 1967, Law No.  7 of 1991, 
Decree No.  925 of 2013, Resolution No.  5.097 of 2011 and Circular No.  37 of 2016.  
55 WTO document G/LIC/N/1/COL/3 of 4  October  2013.  
56 WTO documents G/LIC/N/3/COL/10 of 1  October  2013 and G/LIC/N/3/COL/11 of 21  March  2016.  
57 WTO document G/LIC/Q/COL/3 of 6  May 2014.  
58 Decree No.  2.535 of 1993 and Decree No.  1.809 of 1994.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  or war material or reserved material destined for the armed forces and the national police; and 
(g) imports using the annual licensing system (Table 3.13).59 
3.82.   Annex 1 of Decree No.  925 of 2013 includes 180 tariff li nes subject to prior licensing that 
cover a very wide range of products such as poultry cuts, weapons, chemicals, precursors, narcotic 
drugs, detonators, explosives, used tyres, etc. Of these 180 lines, 12 are excluded from the prior 
licensing regime when they originate in countries with which Colombia has an international 
agreement in force granting access for such goods. Decree No.  925 of 2013 also excludes the 
following imports from the prior licensing regime which were previously subject to it (under De cree 
No. 3.803 of 2006): non -refundable operations; imports of vehicles manufactured during the 
previous year; imports made by official entities; imports of books, publications and other printed 
matter; alcoholic beverages; CKD material manufactured within  two years prior to the import 
application; and remanufactured goods in accordance with cur rent trade agreements signed 
by Colombia.  
3.83.   The MinCIT  Imports Committee is responsible for administering and approving non -automatic 
import licences. Applications are  processed electronically through the VUCE at any time, subject to 
due notice since release of the goods must be justified by a valid prior import licence. Under 
Law No. 19 of 2012, the bodies participating in the VUCE must decide on the prior licences or 
authorizations under their control within three working days, and the Imports Committee must rule 
on approval of the non -automatic import licence within one working day, after having received all 
the requisite permits or authorizations. The procedure costs  about US$15.  
Table 3.13 Non-automatic import licences, 2017  
Product category  Control entity  Type of product 
covered  Justification  Legal measure  
Products included in 
the list drawn up by 
the Higher Council 
for Foreign Tradea  INVIMA or ICA for 
imports of food and 
chemical products, if 
for human or animal 
use Poultry cuts; arms; 
chemicals; precursors; 
narcotic drugs; 
detonators and 
explosives; rags; used 
tyres; bandages  National 
security; health 
protection; 
absorption of 
production  Decree No.  925 of 
2013, Circular No.  037 
of 2016  
Remaindered goodsa Imports Committee  New goods manufactured 
at least two years 
previously or new vehicles 
of the previous year's 
modelb Consumer 
safety; avoid 
unfair 
competition  Decree Nº 925 of 2013  
Products controlled 
by the National 
Drugs Council (CNE)  Ministry of Justice 
and Law  Chemical substances and 
products  National 
security; health 
protection  Decrees Nº 3.990 of 
2010 and No.  925 of 
2013, CNE Res. 
No. 0001 of 2015 and 
Res. Nº 0008 of 2015  
Products imported 
through the Defence 
Industry (INDUMIL)  INDUMIL  Defence industry inputs  National 
security  Law No.  525 of 1999, 
Decrees No.  2.535 of 
1993, No.  1.419 of 
2002, No.  334 of 2002 
and No.  1.070 of 2015  
Products imported by 
or through the 
National Narcotic 
Drugs Fund (FNE)  National Narcotic 
Drugs Fund  Narcotic drugs and 
precursors  Security and 
health 
protection  Resolution No.  1478 of 
2006 as amended by 
Res. No.  262, 
No. 2.335 and 
No. 3.962 of 2009, 
No. 2.593 of 2012 and 
No. 2.340 of 2013  
Products subject to 
special market 
conditionsa  Imports Committee  Any used, 
remanufactured, 
low-quality, out -of-season 
or similar good  Environmental 
security and 
public health  Decree No.  925 of 
2013  
                                                
59 The annual licensing system covers imports of the mining and pet roleum industries, the armed forces 
and the Colombian aviation industry; the licences are processed in accordance with the decrees governing the 
corresponding matters.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Product category  Control entity  Type of product 
covered  Justification  Legal measure  
Duty-free importsa National Mining 
Agency and National 
Hydrocarbons 
Agency (goods for 
exploring for 
minerals and 
hydrocarbons); ICA 
(inputs needed to 
produce vaccines); 
Ministry of Health 
(drugs, vaccines) if 
imported by the 
private sector  Donations to the official 
sector; imports for the 
educatio n and health 
sectors; products for the 
fertilizer industry; paper 
for scientific and cultural 
journals; diplomatic 
vehicles; imports for the 
fire brigade and the 
prison system; goods for 
exploring for minerals or 
petroleum  Sectors having 
priority and 
strategic 
importance for 
national 
economic and 
social 
development  Decree No.  255 of 
1992, Law No.  633 of 
2000, Law No.  788 of 
2002, Law No.  1.430 
of 2010, Decree 
No. 562 of 2011, Law 
No. 1.575 of 2012, 
Decree No.  540 of 
2004 
Imports for the 
Armed Forces and 
National Police  Ministry of National 
Defence  Goods for national 
security and defence, war 
material and reserved 
material  National 
security  Decree No.  925 of 
2013 
Imports under the 
annual licensing 
system  National Mining 
Agency and National 
Hydrocarbons 
Agency (licences for 
the mining and 
petroleum sector)  Imports for the mining and 
petroleum industry, the 
armed forces and the 
Colombian Aviation 
Industry (CIAC)  
 Facilitating and 
streamlining 
import 
operations  Decrees No.  4.801, 
No. 4.802 and 
No. 4.803 of 2008, 
No. 1.573 of 2002, 
No. 3.307 of 2006 and 
No. 03 of 2006 
a The Imports Committee must verify the absence of domestic production in the Register of Producers 
of Domestic Goods in order to determine whether or not the import licence can be granted.  
b "Remaindered goods" does not include books, magazines, videos, films, alcoholic beverages, 
CKD material, goods that entered a Free Zone in new condition dur ing the previous two years, 
and spare parts for vehicles, with the exception of subheadings 40.11, 4 0.12 and 40.13.  
Note:  INVIMA: National Food and Drug Surveillance Institute. ICA: Colombian Agricultural Institute.  
Source:  WTO Secretariat, on the basis of Decree No.  925 of 9  May 2013, and MinCIT  Foreign Trade 
Directorate Circular No.  037 of 29  December  2016.  
3.84.   Colombia has notified the WTO that non -automatic licensing is not intended to restrict the 
quantity or value of imports.60 However, according to Decree No.  925 of 2013 (Article 18), the 
Imports Committee has to check whether there is any domestic prod uction registered with the 
MinCIT  in order to evaluate and decide on non -automatic licence applications for imports of certain 
products (namely, products identified by the Higher Council for Foreign Trades; remaindered goods; 
products to which special mark et conditions apply; and goods for which duty -free treatment is 
requested).61 If an application for a non -automatic licence is refused, the applicant may enter an 
appeal for reconsideration, and once this government channel has been exhausted, have recourse  
to the administrative courts.  
3.85.   Non-automatic licences are valid for six months from their date of approval, and may be 
extended for three months twice. Licences covering imports of narcotic drug precursors are valid for 
three months and may not be extended . Licences covering capital goods are valid for twelve months 
and may be extended for successive periods of up to three months each, which cannot together 
exceed twelve months.  
3.1.5.2.3   Other measures  
3.86.   With a view to renewing the fleet of trucks of over 10.5 tonnes,  for some years Colombia has 
had a "scrapping" programme, involving a one -for-one scheme whereby a new truck may be licensed 
if an old truck is withdrawn from the market (i.e. scrapped). In the context of Colombia's accession 
to the OECD, its trade partner s argued that this measure distorted the market and constituted 
de facto discrimination as it only applied to trucks of over 10.5 tonnes, which are mostly foreign; 
and also that the measure raised the cost of new trucks and of transport, making the Colombi an 
economy less competitive.  
                                                
60 WTO document G/LIC/N/3/COL/11 of 21  March  2016.  
61 Ministry of Trade, Industry and Tour ism, Prior Licensing System Manual. Viewed at: 
http://www.vuce.gov.co/fileman/files/manuales/MANUAL_LIC_PREVIA_09_30.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.87.   In 2016, the Government decreed the abolition of the one -for-one scheme for new vehicles 
entering the market as from 31  December  2018 subject to fulfilm ent of one of the following 
two conditions: utilization of the remaining re sources of the scrapping programme, or conclusion of 
a supply and demand study.62 The authorities have indicated that the first of these conditions will 
be fulfilled, as the resources have been allocated under the 2018 Budget Law. In addition, in order 
to satisfy market demand, the Government has introduced a temporary registration system, in 
parallel with the one -for-one scheme, allowing the entry of an additional number of new vehicles 
without requiring the scrapping of old vehicles. This system will remai n in place at least until 
31 December  2018. The authorities have stated that currently the transitional system is primarily 
used for introducing new trucks.  
3.1.6   Anti-dumping, countervailing and safeguard measures  
3.1.6.1   General  
3.88.   The implementation of trade protection measures is regulated at both national and Andean 
Community (CAN) levels (Table 3.14). The MinCIT  Foreign Trade Directorate, through its Trade 
Practices Subdirectorate, is the authority responsible for investigating dumping, subsidy and 
safeguard cases. Th e Trade Practices Committee adopts the final recommendations.63 Anti-dumping 
and countervailing duties may not be imposed simultaneously on an imported product from the same 
country.64 At the regional level, anti -dumping, subsidy and safeguard investigations  concerning 
products originating in Andean Community countries are handled by the CAN General Secretariat. 
Governments and producers of the CAN countries may request the initiation of investigations.  
Table 3.14 Legal provisions on trade protection measures, 2017  
Legal instrument  Subject  
Domestic legislation   
Law No.  170 of 1994  Incorporates the WTO Agreements into domestic law  
Decree No.  1.750 of 2015  Application of anti -dumping duties  
Decree No.  152 of 1998 Multilateral safeguards for WTO Members  
Decree No.  1.407 of 1999  Safeguards under a special procedure  
Decree No.  1.820 of 2010  Bilateral safeguards in free trade agreements  
Decree No.  573 of 2012  Special agricultural safeguard in non -WTO international trade 
agreements  
Decree No.  299 of 1995  Countervailing measures  
Andean Community (CAN)   
Decision No.  283 of 1991  Dumping and subsidization of third -country products  
Decision No.  452 of 1999  Safeguards for third -country products  
Decision No.  456 of 1999  Intracommunity dumping (CAN members)  
Decision No.  457 of 1999  Intracommunity subsidies  
Chapter IX of the Cartagena 
Agreement and Decision 
No. 563 of  2003 Intracommunity safeguards  
Source:  WTO Secretariat, on the basis of online information from MinCIT , viewed at: 
http://www. MinCIT .gov.co . 
3.1.6.2   Anti-dumping measures  
3.89.   During the review period, Colombia adopted new regulations on the application of 
anti-dumping duties under Decree No.  1.750 of 1  September  2015, which repealed Decree 
No. 2.550 of 2010. The new Decree has been notified to the WTO65 and has been considered by the 
Committee on Anti -Dumping Practices.66 The main changes introduced by Decree No.  1.750 
                                                
62 Presidential Decree No.  1.517 of 22  Septem ber 2016.  
63 This Committee consists of: the Vice -Minister for Foreign Trade (Chairperson); the Vice -Minister of the 
entity most closely related to the domestic industry concerned; the Director of the DIAN; the Deputy 
Director -General of the National Planni ng Department; two advisers from the Higher Council for Foreign Trade; 
and the Head of the Supervisory Authority for Industry and Trade (or the corresponding Deputy Head, 
depending on the case), and the Director of Foreign Trade who participates in an advi sory capacity.  
64 Article 49 of Decree No.  1.750 of 2015.  
65 WTO document G/ADP/N/1/COL/4 of 12  October  2015.  
66 The questions posed by the United States regarding the notification of Colombia are contained in 
WTO document G/ADP/Q1/COL/6 of 5  April 2016 and Colombia's replies are in document G/ADP/Q1/COL/7 
of 28 April 2016.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  concern: duration of anti -dumping duties; application of duties for the whole dumping margin; 
information from the exporting country and country of origin; strengthening of anti -circumvention 
provisions; and institutional review (Box 3.1). In additio n, since February  2016 applications for 
anti-dumping investigations must be processed online as provided for by the MinCIT . 
3.90.   Decree No.  1.750 applies to investigations on imports of products originating in WTO  Members 
as well as from non -WTO member countrie s and countries with which Colombia has not entered into 
any international commitments in this area (Article 2). Pursuant to Decree No.  1.750, the 
investigation and imposition of anti -dumping duties meets the public interest in preventing and 
remedying the  "causation" of material injury, threat of material injury or material retardation in the 
creation of an industry, provided that it is linked to dumping.  
Box 3.1 Main changes introduced by Decree No.  1.750 of 20 15 
Article 14. Margin of dumping: where products are not imported directly from the country of origin but from 
a third country, the price at which they are sold from the country of export to Colombia shall be compared 
with the price in the exporting countr y. This introduces the possibility of applying anti -dumping duties to an 
exporting country through which the goods have transited.  
Article 22. Initiation of investigation: provides for the possibility of ex officio  initiation of an investigation 
without domestic producers having to submit evidence.  
Article 28. Dispatch and receipt of questionnaires: eliminates the possibility for interested parties to request 
the specific exclusion of goods with unique characteristics (i.e. not "like goods") during the preliminary or 
final stages of the investigation.  
Article 31. Examination of evidence: eliminates the possibility for the interested parties to hold meetings 
with the investigating authority during the investigation and the possibility for the investigati ng authority to 
provide assistance to small and medium -sized enterprises.  
Article 43. Calculation of duties: anti -dumping duties may be applied up to the full margin of dumping. 
Under the earlier rules, anti -dumping duties could be applied in a "sufficie nt amount" to eliminate the injury 
("lower  duty").  
Article 49. Application and duration of definitive anti -dumping duties: establishes the general rule that the 
duration of anti -dumping duties is five years; previously, anti -dumping duties could be applied for a 
maximum period of five years.  
Article 50. Anti -circumvention measures: the investigation must be concluded within five months. The 
lodging of guarantees may be required for imports from the countries under investigat ion as of the start of 
the investigation.  
Article 76. Review: adds two factors that the investigating authority must take into account in five -year 
reviews and examinations: improvements in the state of the domestic industry brought about by the duty 
imposed or the price undertakings; and whether the domestic industry is likely to suffer material injury if 
the duty imposed is removed or the price undertakings are terminated.  
Source:  WTO Secretariat.  
3.91.   The various stages of the investigation procedure are regulated in Chapter IV of Decree 
No. 1.750. The MinCIT  Foreign Trade Directorate (DCE) may initiate an investigation at the written 
request of the domestic industry67, or ex officio if there is sufficient evidence to determine the 
existence of injury, thre at of injury or material retardation caused to the domestic industry by the 
dumped imports. Article 24 of the Decree sets out the requirements for submission of the application.  
3.92.   Where the DCE makes a preliminary determination that imports are being dumped and are 
causing injury to the domestic industry, it may impose provisional duties through a reasoned 
resolution. Within three months from the publication of the preliminary resolution, the DCE must 
present the final results of the investigation to the Trad e Practices Committee for the latter to assess 
them and make a final recommendation. On that basis, the DCE adopts the corresponding decision 
through a reasoned resolution published in the Official Journal. Where a definitive anti -dumping duty 
is imposed, it may be in an amount up to the full margin of dumping (under the previous rules a 
"lower duty" was given preference). Definitive anti -dumping duties expire after five years or a 
shorter time where this proves sufficient to eliminate the injury. The dutie s may be reviewed on 
                                                
67 An application is submitted by or on beh alf of the domestic industry when it is supported by domestic 
producers whose joint production represents more than 50 % of the total production of the like product 
produced by the domestic industry supporting or opposing the application.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  grounds of changed circumstances provided a year has passed since their imposition, and they may 
also be subject to a five -year review before the end of their fifth year in force, either ex officio or at 
the request of the domestic ind ustry. The decisions taken in the course of the investigations may 
form the subject of direct proceedings before the MinCIT  to seek the revocation of the administrative 
measure which initiated the investigation or imposed an anti -dumping duty, in accordanc e with the 
Code of Administrative Procedure and Administrative Disputes.  
3.93.   The authorities have indicated that between 1  January  2012 and 31  December  2017, 
Colombia initiated 45 anti -dumping investigations and applied 29 new definitive duties and 
13 provisio nal duties. It also carried out 15 sunset reviews, in 14 of which extension of the duties 
was granted. As at end December  2017, 12 proceedings were under way, including new 
investigations and five -year reviews. At the same date, the average duration of ant i-dumping duties 
in force was 3.5 years.  
3.94.   At 31  December  2017, Colombia maintained 17 definitive anti -dumping duties on imports of 
products from the following countries: China (11), Republic of Korea (2), Mexico (2), India (1) and 
the Bolivarian Republic of  Venezuela (1) (Table  3.15). The products covered by the measures were: 
tableware and kitchenware and loose articles of earthenware or porcelain; link chains, polished, 
galvanized; hoes, bars and mattocks; casing and tubing; radial tyres for buses and truc ks; extruded 
aluminium profiles; flexible and rigid PVC sheets; galvanized smooth sheet; sodium citrate; low 
carbon steel wire; DOP plasticizer (DI 2 Ethylhexyl phthalate); standard gypsum board; and 
high-pressure decorative laminates.  
Table 3.15 Anti-dumping measures in force at 31  December  2017  
Product (HS code)  Investigation ID 
number  Measure  Date of initial  
imposition or latest 
extension  
(Official Journal No.)  
China  
Tableware and kitchenware and 
loose articles of porcelain 
(6911.10.00.00)   RD-215-01-39 Duties: difference between the f.o.b. 
base price of US$2.88/kg and the f.o.b. 
price declared by the importer, provided 
this is lower than the base price. The 
duty cannot exceed the estimated 
dumping margi n of US$1.81/kg.  Extension 21.12.17 
(50.454)  
Tableware and kitchenware and 
loose articles of earthenware  
(6912.00.00.00 ) RD-215-01-39 Duties: difference between the  f.o.b. 
base price  of US$1.71/kg and the f.o.b. 
price declared by the importer, provided 
this is lower than the estimated base 
price.  Extension  
21.12.17  
(50.454)  
Link chain, polished or 
galvanized (73.15.82.00.00)   D-215-05-39 Duties: 4.5% on the f.o.b. price  
declared by the importer, in addition to 
the 10% tariff in force.  Extension 01.11.16  
(50.044)  
Shovels, hoes, digging bars 
and picks  
(8201.30.00.00)   D-215-14-48 Duties: difference between the base 
price of US$ 2.04/kg and the f.o.b. 
price declared by the importer, provided 
this is lower than the base price.  Extension  
19.10.15  
(49.670)  
Casing or tubing 
(7304.29.00.00, 
7306.29.00.00 ) D-215-16-51 Duties: difference between the f.o.b. 
base price  of US$1, 913.92/tonne and 
the f.o.b. price declared by the 
importer.   Extension  
18.08.17  
(50.329)  
Radial tyres for buses or lorries  
(4011.20.10.00)  D-215/20 -58/59  Duties: difference between the f.o.b. 
base price  of US$5.37/kg and the f.o.b. 
price declared by the importer provided 
this is lower than the base price.  12.06.13  
(48.819)  
Extruded aluminium profiles  
(7604.21.00.00, 
7604.29.10.00, 7604.29.20.00, 
7608.10.90.00 and 
7608.20.00.00 ) D-215/850 -02-61/CHN  Duties: difference between the f.o.b. 
base price of US$ 3.60/kg and the f.o.b. 
price declared by the importer, provided 
this is lower than the base price.  Extension  
13.10.17  
(50.385)  
Rigid PVC film  (3920.49.00.00)   D-215-21-62/CHN  
D-215/190 -01-63/CHN  Duties: ad valorem  duty equivalent to 
7.17% of the f.o.b. value declared by 
the importer.  Extension  
12.07.17  
(50.290)  
Galvanized smooth sheet  
(7210.49.00.00)   D-215-22-64s Duties: ad valorem  duty equivalent to 
47.62% of the f.o.b. value declared by 
the importer.  20.12.17  
(50.453)  
Sodium citrate  (2918.15.30.00 ) D-215-25-69 Duties: difference between the f.o.b. 
base price of US$1.80/kg and the f.o.b. 
price declared by the importer.  20.03.15  
(49.459)  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Product (HS code)  Investigation ID 
number  Measure  Date of initial  
imposition or latest 
extension  
(Official Journal No.)  
Low carbon bars and rods  
(7213.91.90.10, 
7213.91.10.10, 7227.90.00.11 
and 7227.90.00.90 ) D-215-33-82 Duties : difference between the f.o.b. 
base price of US$419/tonne and the  
f.o.b. price declared by the importer, 
provided this is lower than the base 
price.  13.05.16  
(49.872)  
Korea, Rep. of  
DOP plasticizer 
(2917.32.00.00)   RD-190-02-081/KO
R Duty: difference between the f.o.b. 
base price  of US$1.44/kg and the f.o.b. 
price declared by the importer.  Sunset review 
26.09.17  
(50.368 ) 
Rigid PVC film (3920.49.00.00)   D-215-21-62/KOR  
D-215/190 -01-63 Duties: ad valorem  duty equivalent to 
12.77% of the f.o.b. price  declared by 
the importer.   Extension  
12.07.17  
(50.290)  
India  
High-pressure decorative 
laminates  (3921.90.10.00)   D-361-02-79 Duties: difference between the f.o.b. 
base price of US$3.34/kg and the f.o.b. 
price declared by the importer, provided 
this is lower than the base price.  09.12.15  
(49.721)  
Mexico  
DOP plasticizer 
(2917.32.00.00 ) RD-190-02-081/ME
X Duties: difference between the f.o.b. 
base price  of US$1.96/kg and the f.o.b. 
price declared by the importer, provided 
this is lower than the base price.  25.08.14  
(49.254)  
Standard gypsum board  D-493-02-84 Duties: ad valorem  duty as follows: 
ABAMAZ 7.14%; USG Mex ico 25.00%; 
and other exporters, 42.86%.  12.10.17  
(50.384)  
Venezuela, Bolivarian Rep. of  
Extruded aluminium profiles 
(7604.21.00.00, 
7604.29.10.00, 7604.29.20.00, 
7608.10.90.00 and 
7608.20.00.00 ) D-215/850 -02-61 Duties: difference between the f.o.b. 
base price of US$3.72/kg and the f.o.b. 
price declared by the importer, provided 
this is lower than the base price.  Extension  
13.10.17  
(50.385)  
Source:  WTO Secretariat, based on Colombia's notifications (G/ADP/N/*/COL), MinCIT  Foreign Trade 
Directorate Resolutions and information provided by the authorities.  
3.1.6.3   Countervailing measures  
3.95.   During 2012 -2017, Colombia did not adopt any countervailing duties, nor did it initiate any 
subsidy investigations.68 There were no changes in the la w on the subject.  
3.1.6.4   Safeguard measures  
3.96.   In the national legislation, Decree No.  152 of 1998 governs the application of safeguard 
measures for WTO Members. Measures may be applied when imports of a product have increased 
to such an extent and under such condit ions as to cause or threaten to cause serious injury to the 
domestic industry that produces like or directly competitive products. The measures apply to all 
imports of the investigated product regardless of origin. The application of provisional safeguards  in 
the form of a duty is authorized when there are critical circumstances in which any delay would 
cause injury that would be difficult to repair to the domestic industry, provided there has been a 
preliminary determination of the existence of clear evide nce that the increased imports have caused 
or threaten to cause serious injury.  
3.97.   After completing its investigation, the DCE prepares a technical report for submission to the 
Committee on Customs, Tariff and Foreign Trade Matters (AAA Committee), which make s its 
recommendation to the Higher Council for Foreign Trade. Where adoption of a measure is 
recommended, the MinCIT  will hold consultations with the governments concerned, and then send 
the results of the consultations together with the AAA Committee's re commendation to the Higher 
Council for Foreign Trade, which assesses it and gives its recommendation on the adoption of the 
measure to the Government. The definitive safeguard consists preferably in the imposition of a tariff 
levy, and where this is not vi able, a quantitative restriction. The measure may not last more than 
                                                
68 WTO documents  G/SCM/N/321/Add.1 of 23  October  2017, G/SCM/N/313/Add.1 of 21 April 2017, 
G/SCM/N/298/Add.1/Rev.1 of 25 October  2016, G/SCM/N/305/Add.1 of 21 October  2016, G/SCM/N/298/Add.1 
of 22 April 2016, G/SCM/N/289/Add.1 of  22 October  2015, G/SCM/N/267/Add.1 of  15 April 2014, 
G/SCM/N/259/Add.1 of 18  October  2013, G/SCM/N/250/Add.1 of 10  April 2013, G/SCM/N/242/Add.1 
of 12 October  2012, and G/SCM/N/235/Add.1 of 24  April 2012.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  four years (including the period of the provisional measure) and, if it is extended, the total period of 
application may not exceed eight years. The extended measure may not be more restr ictive and 
should be progressively phased out. When a measure is adopted for an initial period of more than 
three years, the situation is reviewed at mid -term to determine whether the measure needs to be 
maintained. There is also a requirement to evaluate the applicant's adjustment programme.  
3.98.   In the period between January  2012 and December  2017, Colombia opened four safeguard 
investigations under Decree No.  152 of 1998. The products concerned were: (i) profiles and bars of 
iron or non -alloyed steel; (ii) co rrugated bars and rods; (iii) steel angles; and (iv) steel wire rod.69 
Of the four investigations, two gave rise to the adoption of provisional measures, and in only one 
case was a definitive safeguard measure imposed (steel wire rod) in the form of a tarif f quota.70 In 
January  2015, Colombia initiated an investigation to evaluate extension of the definitive measure 
applied to steel wire rod71 and subsequently notified the Committee of its decision not to prolong 
the measure beyond its original deadline (30  April 2015).72 
3.99.   Decree No.  1.407 of 1999 regulates the application of safeguard measures for both 
WTO Members and non -member countries throug h a special procedure. These measures are applied 
when, as a result of an investigation, it is shown that there is a disruption of the domestic industry 
as a result of increased imports under unfair price or quantity conditions. If the exporting country is  
a WTO Member, the measure only applies when the resulting tariff increase does not exceed the 
level bound by Colombia. Imports originating in countries with which Colombia has signed a free 
trade agreement are excluded.73 Measures applied pursuant to Decre e No.  1.407 may only take the 
form of tariff levies and have a duration of two years without extension. The authorities indicated 
that since 2012 there have been 14 investigations under Decree No.  1.407 and only two safeguards 
have been applied.  
3.100.   Decree No.  1.820 of 2010 governs the application of bilateral safeguard measures under 
international trade agreements to which Colombia is a party. The Decree is not applicable to the 
same good originating in another contracting party and during the same period, and  supplements 
the other domestic regulations implementing GATT Article XIX and the WTO Safeguards Agreement.  
3.101.   Within the Andean Community, Decree No.  452 of 1999 governs the application of 
safeguards on third -country imports, while Chapter IX of the Cartagen a Agreement and Decision 
No. 563 of 2003 govern the application of safeguards to intracommunity imports. The authorities 
have stated that there has only been one intracommunity investigation (on sugar imports) which 
concluded without imposition of measures . 
3.2  Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.102.   The National Tax and Customs Directorate (DIAN) is the authority in charge of processing 
export formalities, including the sale of goods from the national territory to a Free Zone. E xport 
formalities are processed through the customs IT system.74 The authorizations, approvals and 
permits, depending on the product to be exported, are processed online through the Single Window 
for Foreign Trade (VUCE) administered by the MinCIT.75 Any nat ural or legal person that carries out 
export transactions must be registered in the Single Tax Register (RUT) on an updated basis. Legal 
persons must be legally domiciled and/or represented in Colombia. Coffee exporters must also make 
an annual application  for registration in the Register of Coffee Exporters, which is a means of 
                                                
69 WTO documents G/SG/N/6/COL/4 of 29  July 2013; G/SG/N/6/COL/5, G/SG/N/6/COL/6 
and G/SG/N/6/COL/ 7, all of 4  September  2013.  
70 WTO document G/SG/N/8/COL/1/Suppl.1 of 25  April 2014.  
71 WTO document G/SG/N/6/COL/4/Suppl.1 of 13  January  2015.  
72 WTO document G/SG/N/6/COL/4/Suppl.2 of 20  May 2015.  
73 Decree No.  1.407 of 1999 (Article 1 and Article 4).  
74 The Single Revenue and Automated Control Services Form (MUISCA). Online information from the 
DIAN, viewed at: https://muisca.dian.gov.co . 
75 The VUCE website is: http://www.vuce .gov.co . WT/TPR/S/372/Rev.1 • Colombia  
 
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  monitoring the minimum quality requirements laid down by the National Committee of Coffee 
Growers.76 
3.103.   Under the current rules (Decree No.  2.685 of 1999) the services of a customs agent are 
required for all exports exceeding US$10,000. However, during a one -year period from the entry 
into force of Decree No.  390, this obligation applies only in the case of exports exceeding US$30,000. 
After this transition period, exporters will be free to apply directly to the DIAN regardless of the 
value of the exports.77 
3.104.   Four years after the entry into force of Decree No.  390, the categories of Regular Customs 
Users (UAP) and High Export Users (ALTEX) will cease to exist.78 The new Customs Statute i ncludes 
the special treatments for authorized exporters, trusted users and authorized economic operators 
(Section 3.1.1.2, Table 3.2).  
3.105.   In order to carry out an export transaction, a shipment authorization application must be 
submitted online to the DIAN. T he application must be accompanied by the following documents: a 
document substantiating the transaction (e.g. commercial invoice); any applicable approvals or 
authorizations; customs mandate (while the obligation to employ a customs agent is in force, and  
subsequently when such services are used voluntarily); proof of payment of withholdings, royalties, 
promotion duties as appropriate, fees or any other tax payable; and any other document required 
under specific rules. Before submitting the shipment author ization application, the declarant must, 
if the product to be exported so requires, provide the following: prior registration documents 
(emeralds, medicines, panela); marketing permit (fish and molluscs), prior authorizations (primary 
forest products), cle arances (arms, ammunition, explosives), plant and animal health certificates or 
sanitary inspection certificates (food), tax payment certificate (coal, coffee, panela) and certificates 
of origin (preferential agreements). The latter are issued by the DIAN or by the producer, 
manufacturer or exporter as may be provided for in the trade agreement.  
3.106.   Once the shipment application has been accepted and the goods have entered the primary 
customs zone, on the basis of a risk analysis the DIAN determines whether an examination of the 
documents or physical inspection is necessary or shipment can be authorized directly. If the 
intervention of various entities is necessary for the inspection of the goods, the inspection must be 
carried out simultaneously.79 
3.107.   The shipment operation comprises loading on the means of transport for the goods to exit. 
The international carrier must certify the shipment at the initial port of shipment and register the 
following information through the electronic information services: arrival at the actual port of exit, 
unloading where appropriate, transfer to the means of transport that will exit the country and actual 
departure for the final destination. Once the shipment has been certified by the transporter, the 
shipment authorization applicat ion becomes the customs export declaration generated by the 
electronic information services of the DIAN for signature by the exporter or customs agent, which 
completes the export process.  
3.108.   Decree No.  390 establishes the following export regimes: definitive export (definitive export, 
export of samples of no commercial value, and coffee export regime); temporary export; and special 
export regimes (postal traffic, express or courier delivery, export of household effects and export 
through networks and pipelines ). 
3.2.2   Taxes, charges and levies  
3.109.   Exports do not incur VAT or municipal and departmental taxes. However, contributions are 
charged on exports of mild coffee, unset emeralds and coal for the purpose of promoting the 
development of these sectors.  
3.110.   Coffee exports a re subject to a coffee contribution of US$0.06 per pound of mild coffee 
exported when the benchmark price of mild coffee is over US$0.60 cents per pound. The contribution 
                                                
76 Resolution No.  1 of July  2009 of the National Committee of Coffee Growers.  
77 Article 669 of Decree No.  390 of 2016.  
78 Ibid.,  Article 675.  
79 Ibid., Article 343.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  may never be less than US$0.02 per pound of coffee exported.80 The purpose of this con tribution is 
to finance the National Coffee Fund.  
3.111.   The parafiscal contribution applied to unset emerald exports is 1 % of the value of the exports 
in foreign currency, applying the representative market exchange rate on the date the contribution 
is paid for each export operation.81 The resources collected go to the National Emeralds Fund.  
3.112.   Coal exporters must provide the customs office of exportation with proof of payment of the 
royalties on coal production assessed on the reference price fixed by the Ministry of Mining and 
Energy. There is also a minimum price for coal exports, fixed on the basis of technical and 
commercial criteria, such as the weighted average f.o.b. price in Colombian ports over the 
six months prior to the date of determination, after allowi ng for transport and port costs, the quality 
of the coal and the characteristics of the coalfield.82 
3.2.3   Export prohibitions, restrictions and licensing  
3.113.   The Higher Council for Foreign Trade and the Committee on Customs, Tariff and Foreign 
Trade Matters are auth orized to recommend the adoption of measures to control exports, or even 
to prohibit them in order to ensure export quality or keep the domestic market supplied, as well as 
to determine packaging standards and other requirements.83 
3.114.   In accordance with domest ic legislation and the international agreements Colombia has 
entered into, exports of specific products are subject to some type of control, such as the 
requirement to obtain authorizations, certificates, approvals or other requirements. For example, for 
reasons of environmental conservation, exports of ozone -depleting substances are controlled. There 
are also restrictions on exports of wild fauna and flora of endangered species in order to comply with 
commitments under  the Convention on International Trade  in Endangered Species of Wild Fauna 
and Flora (CITES).  
3.115.   A marketing permit issued by the National Fishing and Aquaculture Authority (AUNAP) is 
required for exports of fishery resources for consumption or ornamental purposes. Each year the 
Ministry of Agric ulture, Ministry of the Environment and AUNAP issue a resolution allocating quotas 
for such exports. The use of fishery resources is monitored by means of the approvals granted 
through the VUCE.  
3.116.   In order to administer its commitments under the Free Trade A greement (FTA) with Mexico 
(1995), Colombia applies export quotas for cattle, dairy products, oils and flour, inter alia, which are 
administered by the Ministry of Agriculture and Rural Development.84 The MinCIT , for its part, 
administers export quotas for sugar and sugar products agree d under the FTA with the United  States. 
In the WTO framework, Colombia applies an export quota on unrefined sugar and panela exported 
to the United States.85 
3.117.   Through Circular No. 038 of 29 December 2016, the MinCIT  Foreign Trad e Directorate 
updated the lists of products subject to control by the entities participating in the VUCE exports 
module (Table 3.16).  
Table 3.16 Goods subject to export controls through the VUCE  
Products  Entity  Requirement  Legal measure  Justification  
Coal; precious 
metals; precious 
stones  ANM Approval  
Payment of 
royalties  Laws No. 141 of 1994, 
No. 619 of 2000, No. 76 of 
2002, No.  1.283 of 2009 
and 1.530 of 2012, 
Decrees No. 600 of 1996 
and No.  4.479 of 2009  Regulate the 
collection, 
distribution and 
transfer of 
royalties  
                                                
80 Law No.  1.151 of 2007.  
81 Decree No.  2.407 of 2000.  
82 National Mining Agency, Resolu tion No.  887 of 2014.  
83 Decree No.  2.553 of 1999.  
84 Decree No. 2.676 of 2011, as amended by Decrees No. 0015 and No. 1.545 of 2012.  
85 Postal Circular SOE No. 50 of 1990 of the Ministry of Trade, Industry and Tourism.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Products  Entity  Requirement  Legal measure  Justification  
Ornamental fish 
and fishery 
resources  AUNAP  Approval  
Marketing permit  Law No. 13 of 1990, 
Regulatory Decree  
No. 2.256 of 1991, Decrees 
No. 4.181 of 2011, 
No. 1.071 of 2015  Preserve fishery 
resources for 
consumption and 
ornamental 
purposes  
Wild fauna and 
flora (Non -CITES)  ANLA  Non-CITES export 
permit  Decree No. 3573 of 2011  
Resolutions 1.367 o f 2000, 
No. 454 of 2001 and 
No. 2.202 of 2006  Environmental 
protection  
Ozone -depleting 
substances  ANLA  Approval  Laws No. 30 of 1990, No. 
29 of 1992, No. 306 o f 
1996, No. 618 of 2000 and 
No. 960 of 2005. Decrees  
No. 1.076 of 2015 and 
Res. No. 131 of 2014  Environmental 
protection; 
compliance with 
international 
conventions  
CITES endangered 
wild fauna and 
flora species  Ministry of 
the 
Environment 
and 
Sustainable 
Development  CITES export 
permit  Law No. 17 of 1981, 
Decrees No. 1.909 of 2000, 
No. 197 of 2004, No. 3.570 
of 2011 and No. 1.076 of 
2015, Res. No.  1.263 of 
2006 and No . 2.652 of 
2015 Prevent 
international trade 
in endangered 
species  
Controlled 
chemical 
substances and 
products  Ministry of 
Justice and 
Law Authorization; 
certificate of clean 
drug-trafficking 
record; export 
quotas  Decree No. 1.069 of 2015, 
CNE Res. No. 001 of 2015 
and No. 008 of 2015, CAN 
Decisions No. 505 of 2001 
and 602 of 2004, 1988 
Vienna Convention  Public health  
Agricultural 
products subject 
to export quotas 
to Mexico  MADR  Export quotas  Decree No. 2.676 of 2011, 
as amended by Decrees 
No. 0015 and No. 1.545 
of 2012 Administration of 
quotas under the 
FTA with Mexico  
Unrefined sugar 
and panela 
exported to the 
United States  MinCIT  Export quotas  MinCIT SOE Postal Circul ar 
No. 50 of 1990; Circular 
No. 024 of 2 016, as 
amended by Circular 
No. 038 of 2016  Administration of 
quota allocated to 
the United States 
in the WTO  
Sugar and 
sugar -containing 
products exported 
to the 
United  States  MinCIT  Export quotas  Circular No. 024 of 2 016, 
as amended by Circular 
No. 038 of 2016  Administration of 
quotas under the 
FTA with the 
United  States  
Note:  ANLA: National Environmental Licensing Authority; ANM, National Mining Agency; AUNAP: National 
Aquaculture and Fisheries Authority; CNE: National Narcotic Drugs Council; MinCIT : Ministry of 
Trade, Industry and Tourism; MADR: Ministry of Agriculture and Rural Development.  
Source:  WTO Secretariat, based on MinCIT  Circulars No. 024 of 2016 and No. 038 of 2016, and information 
provided by the authorities.  
3.2.4   Export support and promotion  
3.2.4.1   Support for exports  
3.118.   At the time of writing of this report, the latest notification submitted by Colombia pursuant 
to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing 
Measures dated from 30 May 2011. In that no tification, Colombia stated that it had not granted any 
subsidies during the periods 2007 -2009 and 2009 -2011 and that, consequently, within its territory 
there were no national measures that needed to be notified under the above -mentioned provisions.86  
3.119.   In 2016, Colombia notified the WTO that it had not granted any agricultural export subsidies 
or provided any food aid between 1 January and 31 December 2011.87 
                                                
86 WTO document G/SCM/N/186/COL of 30 May 2011.  
87 WTO document G/AG/N/COL/52 of 10 August 2016.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.2.4.1.1   Free Zones  
3.120.   In order to comply with its commitments under the WTO Agreement on Subsidies and 
Counter vailing Measures, Colombia issued Law No. 1.004 of 2005 revising the free zone regime. 
During the review period, under Decree No. 1.289 of 17 June 2015 the MinCIT  was tasked with 
formulating and administering policies on free zones, a function previously e xercised by the DIAN. 
In addition, through Decree No. 2.147 of 23 December 2016 the free zone regime was again modified 
in order to unify and simplify the rules, streamline procedures, facilitate access to the regime and 
define the roles of the various ent ities involved in the process for declaring the establishment of free 
zones.88 At the regional level, Article 57 o f Andean Community Decision No.  671 of 2007 on the 
harmonization of customs regimes provides that "free zones are governed by the provisions of  the 
national legislation of each member country".  
3.121.   Legal persons set up in Colombia or branches of foreign companies, technology parks 
recognized by the MinCIT  and port companies may be affiliated to the free zone regime. Users of 
free zones receive specia l tax, customs and foreign trade treatment.  
3.122.   Two kinds of free zone may be established in Colombia: permanent free zones and temporary 
free zones. Permanent free zones may consist of multiple users or a single enterprise 
(mono -enterprise or special zones).  Offshore permanent free zones for the exploration and 
production of hydrocarbons may also be established.89 Decree No. 2.147 of 2016 lays down the 
general and specific requirements governing the establishment of each of these types of zone.  
3.2.4.1.1.1   Permanent free zones and special permanent free zones  
3.123.   A permanent free zone (ZFP) is a delimited area of the national territory in which multiple 
industrial users of goods or services and commercial users90 may set up business. A special 
permanent free zone (ZFPE) is a d elimited area of Colombian territory in which a single industrial 
user is established, whose business project is considered likely to have a significant economic and 
social impact by the MinCIT .91 The ZFPE regime is available to new goods -producing enterpri ses, 
dairy sector enterprises, agro -industrial projects, services enterprises (in general), health services 
and port services enterprises, as well as to already established enterprises provided they generate 
new investment. Free zones may be established in  any part of the national territory.  
3.124.   Offshore permanent free zones (ZFPCA) are reserved exclusively for hydrocarbon technical 
evaluation, exploration and production activities, and are administered by the operator -user. 
Establishment of a ZFPCA requires a  contract with the National Hydrocarbons Agency (ANH) and 
fulfilment of the detailed technical requirements set out in Decree No. 2.147 of 2016 (Article 40 
et seq.). In addition to the user -operator, other users may also supply goods and services covered 
by the contract. The duration of a ZFPCA is equal to that of the contract between the operator and 
the ANH.92 
3.125.   Colombia prohibits the pursuit of certain activities in free zones, namely: (i) the exploration, 
exploitation or extraction of non -renewable natural  resources specified in the Mining and Petroleum 
Code; with the exception of the offshore permanent free zones; (ii) the provision of financial 
services; (iii) the provision of household public services, except for power generation or supply of 
national lo ng-distance public telephony services; and (iv) any activity performed under a State 
concession contract, with the exception of port concessions.93 
                                                
88 Decree No. 1.546 of 19 September 2017 deferred the entry into force of some provisions of Decree 
No. 2.147 of 2016, which are to be phased in. Some rules of Dec ree No. 2.685 of 1999 (customs legislation) 
remain in force, and the following resolutions apply: No. 3.025 of 10 September 2015  (form for the quarterly 
reports of free zones and free zone users), No. 0799 of May 2017 (designation of the technical secretar iat of 
the Intersectoral Free Zone Commission) and No. 1.451 of 31 July 2017 (Composition of the Intersectoral Free 
Zone Commission).  
89 At 31 December 2017, there were special conditions for free zones in the departments of Caquetá, 
Cauca, Huila, Nariño an d Putumayo and the metropolitan area of Cúcuta.  
90 Commercial users engage in marketing or storage activities. They may not occupy an area greater 
than 15% of the ZFP (Decree No. 2.147, Article 4).  
91 Decree No. 2.147 of 2016, Article 19 (paragraph).  
92 Ibid., Chapter IV.  
93 Ibid., Article  21. WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.126.   The user -operator of a ZFP/ZFPE must be a legal person set up under Colombian law or 
established as a branch of a foreign company, have a net worth of at least 2,300 current statutory 
minimum monthly wage units (SMMLVs), comply with commitments of a technical nature, and be 
authorized by the MinCIT  to administer, promote and develop one or more free zones.94  
3.127.   In order to establish a ZFP/ZFPE, candidates must meet minimum investment, equity and 
job-creation requirements within an agreed time -limit, and submit an application to the MinCIT , 
which is the authority responsible for declaring the establishment of a free z one. The application 
must be accompanied by a Development Master Plan indicating the minimum requirements 
stipulated, as well as the estimated sales and a plan for the internationalization of the free zone.95 
These requirements vary with the type of zone, t he activity to be carried on and the department in 
which the free zone is located.96 The Development Master Plan has to be approved by the 
Intersectoral Free Zone Commission, which consists of the Minister of Trade, Industry and Tourism, 
the Minister of Fin ance and Public Credit, the Director of the National Planning Department (DNP), 
the Director of the Tax and Customs Directorate, and a representative of the President of the 
Republic. Once the Development Master Plan has been approved and the approvals hav e been 
obtained from the DIAN (tax obligations and fiscal impact) and the DNP (economic impact), the 
MinCIT declares the establishment of the ZFP for a maximum of 30 years with the possibility of 
extension for a further 30 years; in the case of a ZFPE the maximum term is 30 years without 
possibility of extension.97 
3.128.   In addition to these minimum requirements for ZFP/ZFPE operators, industrial and 
commercial users must satisfy investment and job -creation requirements that vary depending on 
their total assets (T able 3.17).  
Table 3.17 Requirements applicable to industrial and commercial users of permanent 
free zones  
Total assets (SMMLVa) Investment (SMMLVa) Direct employment  
Less than 500  - 7b  
501-5,000  1,000  20 
5,001 -30,000  5,000  30 
Over 30,000  11,500  50 
a The current statutory minimum monthly wage (SMMLV) at 1 January 2017 was Col$737,717; the 
amount is adjusted annually.  
b Project start -up: three jobs; second year: two more jobs; third year: two more jobs.  
Source:  Article 80 of Decree No. 2.147 of 2016.  
3.129.   ZFP/ZFPE users benefit from tax concessions and simplified customs and foreign trade 
formalities (Table 3.18). The main advantages include: a single income -tax rate of 20%, compared 
with the general rate of 33%.98 Goods introduced into the ZFP/ZFPEs are exempt from customs 
taxes (VAT and duties) and the foreign goods may remain in the free zones indefinitely. There is no 
restriction on the sale by users of ZFP/ZFPEs to the national customs territory of goods o r services 
produced in the free zone provided they pay the corresponding taxes on the foreign component.99 
                                                
94 The operator -user of a ZFPE must be a legal person other than the industrial user.  
95 The internationalization plan must specify, among other things, the action that will be taken to 
promote the free zone internationally, attract foreign investment, generate ne w business, incorporate 
cutting -edge technology, and promote import substitution  in the case of a ZFP, as well as international 
marketing strategies for products and services in the case of the ZFPEs.  
96 During the review period, there was a temporary regime for ZFPEs in the departments of Caquetá, 
Cauca, Huila, Nariño, Putumayo and th e metropolitan area of Cúcuta (department o f Norte de Santander). The 
time-limit for affiliation to this regime was 31 December 2017 (Decree No. 2.147, Article 36).  
97 Decree No. 2.147 of 2016, Article 23.  
98 Tax Statute (Article 240 -1), as amended by Law No . 1.819 of 2016 (Article 101), which raised the 
income tax rate for ZFP/ZPFE users from 15% to 20% as of January 2017.  
99 Pursuant to Article 112 of Decree No. 2.147 of 2016, in force since September 2017, the tax base for 
the application of customs duties on goods imported from a free zone is determined on the f.o.b. value of each 
of the goods and the foreign raw materials and inputs involved in the production process of the finished final 
good, adding the cost of delivery to the point of importation into t he national customs territory; and the 
customs duties to be paid correspond to those of the tariff line of the final good. In the case of VAT on imports 
of finished goods produced in a free zone with exported domestic components, the tax base is the custom s 
value plus the customs duties, adding the value of the production costs and without disallowing the value of 
the exported domestic component. This tax base does not apply to companies declared as a free zone prior to WT/TPR/S/372/Rev.1 • Colombia  
 
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  Exports from ZFP/ZFPEs to foreign markets are also free and benefit from the tax incentives granted 
to exports from the national customs territory, su ch as the Tax Reimbursement Certificate (CERT) 
and exemption from or refund of VAT.100 Sales of raw materials, parts, inputs and finished goods 
from the national customs territory to the free zones or between free zones are exempt from VAT 
(with an entitleme nt to reimbursement).101  
Table 3.18 Benefits for free zone users  
Description  Legal basis  
Tax concessions   
Single income tax rate of 20% for industrial users and operators  Law No. 1.004  of 2005, Article 5; Tax 
Statute, Article 240 -1; Law No. 1.819 
of 2016  
Sales of raw materials, parts, inputs and finished goods between users exempted 
from VAT (entitled to refund)  Law No. 1.004  of 2005, Article 7; and 
Tax Statute, Articles 4 81 and 850  
Customs concessions   
Exemption from payment of customs taxes (duty and VAT) on the introduction of 
goods from abroad while they remain in the free zone  Law No. 1.004 of 2005, Articles 1, 
394 and 395  
Foreign trade benefits   
Goods from abroad can be introduced into a free zone and are not considered an 
import provided that the transport document shows that they are for the account 
of a user. Export operations are authorized by the operator -user; no shipping 
authorization or export declar ation is required  Decree No. 2.685 of 1999  
Possibility of temporarily removing the raw materials for partial processing outside 
the free zone for up to nine months  Decree No. 2.685 of 1999, Article 406  
No restriction on sale to third countries and to the national territory of goods or 
services produced in the free zone  Law N o. 1.004 of 2005 and Decree 
No. 2.147 of 2016  
Exemption from VAT on purchases of raw materials, parts, inputs and finished 
goods by free zone users from suppliers in the national c ustoms territory and 
between free zone users, provided they are necessary for advancing the business 
purpose of the users concerned  Tax Statute, Article 481  
No time -limit on how long goods entering the free zone may remain  Law No. 1.004 of 2005, Decrees 
Nos. 2.685 of 1999 and 2.147 of 2016  
Source:  Ministry of Trade, Industry and Tourism.  
3.130.   According to information from the MinCIT, at June 2017 there were 111 permanent free 
zones (88 at end 2011), operating in 20 departments. Out of the  total number of fre e zones, 43  were 
ZFPs and 68 were ZFPEs. At June 2017, the ZFP/ZFPEs ha d generated a total of Col$41.5  trillion of 
investment and about 175,000 direct and indirect jobs. At the same date, according to MinCIT 
information, 934 companies were operating in the  free zones in the following sectors: 55% in 
industry (cement, gypsum board, glass, ceramics, toiletries, gases, refining, paper, parts and 
components, etc.); 33% in services (health services, port services, call centres and power 
generation); and 12% in a gro-industrial projects (palm oil, fruit, foods, biofuels, sugar and ethanol).  
3.131.   The National Administrative Department of Statistics (DANE) publishes statistics on the 
foreign trade of the free zones.102 The data show that exports from these zones (ZFPs and ZFPEs) 
fluctuated during the review period (Chart 3.2). After growing in 2012 and peaking in 2013 
(US$3,393,600 f.o.b.), they decreased in 2014 -2015, before rising again in 2016. However, the data 
for January -July 2017 show a decline ( -24.5%) compared with  the same period of 2016, primarily 
owing to the fall in exports to the United States, the main market. The value of imports by free 
zones fell gradually from 2012, reaching US$2,041,086 c.i.f. at end 2016. Despite this trend, imports 
exceeded exports betw een January and July 2017, resulting in a trade deficit for free zones.  
                                                
31 December 2012 or those already eng aged in the procedure with the Intersectoral Free Zone Commission or 
the DIAN at that date (Tax Statute, Article 459).  
100 The CERT applies only to the value added in the free zone, without the inclusion of the value of the 
raw materials used in the producti on, processing or working of the goods exported from the national customs 
territory. At present, the CERT is 0% (information provided by the authorities).  
101 Tax Statute, Article 481.  
102 Online information from DANE, viewed at: https://www.dane.gov.co/index.php/estadisticas -por-
tema/comercio -internacional/zonas -francas/historicos -zonas -francas . WT/TPR/S/372/Rev.1 • Colombia  
 
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  Chart 3.2 Exports from free zones, January 2012 -July 2017  
 
Source:  Online information from DANE, viewed at: http://www.dane.gov.co/index.php/estadisticas -por-
tema/comercio -internacional/zonas -francas . 
3.2.4.1.1.2   Temporary free zones  
3.132.   Under Decree No. 2.147 of 2016, the MinCIT may declare as temporary free zones (ZFT) 
places where national or international fairs, exhibitions, congresses and seminars of importance for 
Colombia's economy and international trade are being held. In order to establish a ZFT, the entity 
wishing  to administer it must submit information on its existence and legal representation; the 
boundaries and exact delimitation of the zone; the nature and duration of the event; and the type 
of goods that will enter the ZFT.103 The declaration of temporary free zone status covers a period 
comprising the duration of the event, the three months prior to the event and six months following 
the event; the latter period may be extended once only for up to the same length of time. There are 
two kinds of users: the manag er-user and the exhibitor -user. Imports of goods into temporary free 
zones benefit from the same facilities with respect to customs formalities as imports into ZFP/ZFPEs 
(Table  3.19). Once the period of establishment of the temporary zone expires, any good s used in 
the exhibition that are not exported, imported or transported to another free zone are deemed to 
have been legally abandoned.  
3.2.4.1.2   Tax Reimbursement Certificate (CERT)  
3.133.   The CERT, created by Law No. 48 of 1983, is aimed at promoting exports of goods an d 
services through the refund of all or part of the indirect taxes and charges and contributions paid by 
the exporter. Only definitive exports of goods manufactured or produced in Colombia are entitled to 
the CERT, which is calculated on the basis of a for mula that includes a percentage level of refund 
fixed by the MinCIT, which can vary according to the product and the export destination.104 CERTs 
may be used for the payment of income tax and supplementary taxes, VAT and tariff duties, among 
others. The CERT  is used when justified by the prevailing economic conditions. It was last activated 
in 2011 with a percentage refund level of 1.5% for exports shipped between 1 January and 
30 April 2011, and the cert ificates expired on 31  December2012 .105 The authorities h ave indicated 
that the CERT was not activated in the period  2012 to 2017.106 
                                                
103 Article 57 of Decree No. 2.147 of 2016.  
104 Exports to CAN member countries are not eligible for the CERT.  
105 Pursuant to Decrees No. 3045 of 23 August 2011 and No. 3180 of 2 September 2011.  
106 In a communication submitted to the Committee on Subsidies and Countervailing Measures, 
Colombia stated that the CERT was phased out pursuant to Decree No. 1.989 of 2002, WTO document 
G/SCM/Q2/COL/10 of 24 September 2002.  
 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000
2012 2013 2014 2015 2016 2017(US$ thousand, f.o.b.)WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.2.4.1.3   International Trading Companies (CI)  
3.134.   The special regime for International Trading Companies (CI), governed by Decree No. 67 of 
1979, allows the purchase of goods on the domestic market with exemption from VAT, provided they 
are exported within six months following the issuance of the certificate to the supplier.107 In addition, 
purchases by CIs are not subject to withholding tax. In order to apply for enrolment as a CI, it is 
necess ary to set up as an international trading company with the business purpose of engaging in 
foreign trade operations, obtain a Tax Identification Number (NIT), enrol in the national register of 
exporters, and draw up a market study.108 The MinCIT is responsib le for administering this 
instrument. The authorities indicated that there were 265 authorized CIs at December 2017.  
3.2.4.2   Export promotion  
3.135.   ProColombia (formerly Proexport) is a trust whose purpose is to promote exports (other than 
mining and energy exports), fo reign investment, the expansion of Colombian companies abroad, 
tourism and Colombia’s country brand.109 Through its offices in Colombia and representative offices 
abroad, ProColombia promotes international business by various means, including the identificat ion 
of market opportunities; design of market penetration strategies; internationalization of companies; 
support for the design of action plans; business contacts; support for foreign businesses interested 
in procuring Colombian goods and services or inves ting in Colombia; and partnerships between 
Colombian and foreign entities, both public and private, in order to expand the availability of 
resources.110  
3.136.   With regard specifically to export promotion, ProColombia provides information on business 
opportunities  and offers training programmes and support for tailoring exportable supply to demand, 
as well as programmes to facilitate export processes. As a result of ProColombia's work, 
7,197  companies reported that they had business opportunities with international  purchasers 
between January 2012 and August 2017, and more than 5,132 companies reported that they had 
done business worth a total of 11,740 million (Table 3.19). The sectors concerned included 
agro-industry, textiles and clothing, flowers and live plants,  engineering and construction services, 
metalworking, etc. ProColombia's budget allocated to export promotion activities totalled 
US$112  million between 2012 and August 2017.  
Table 3.19 ProColombia: export pr omotion performance, 2012 -2017  
Year  Number of companies 
with business 
opportunities  Number of companies 
with business  Amount of business 
(US$ million)  Export promotion budgetb  
(US$ million)  
2012  1,928  1,722  1,554  24 
2013  2,102  1,923  1,977  24 
2014  3,144  2,207  1,962  24 
2015  3,239  2,289  2.011  15 
2016  3,202  2,174  2,373  16 
2017a 2,808  1,568  1,862  9 
a Data for 2017 cover January to August.  
b Includes payroll costs of staff devoted to export promotion; average exchange rate used.  
Source:  Information provided by ProColombia.  
3.2.4.3   Export financing, insurance and guarantees  
3.137.   The Foreign Trade Bank of Colombia (Bancoldex), a semi -public limited company having as 
its main shareholder the MinCIT (91.9%)111, is a development bank supervised by the Finan cial 
Supervisory Authority of Colombia, which functions as a second -tier bank through banks and other 
                                                
107 Tax Statute, Articles 479 and 481.  
108 Online information from the Ministry of Trade, Industry and Tourism, viewed at: 
http://www.mincit.gov.co/publicaciones/10332/enque_consiste_el_regimen_como_sociedad_de_comercializaci
on_internacional_c i. 
109 The name Proexport was changed to ProColombia in 2014 to reflect the wider scope of its activities, 
which are not confined to export promotion.  
110 Online information from ProColombia, viewed at: http://www.procolombia.co/procolombia/que -es-
procolombia/objetivos -y-funciones . 
111 The other main shareholder is the Ministry of Finance and Credit (7.9%). Online information from 
Bancoldex, viewed at: http://www.bancoldex.com/contenido/contenido.aspx?catID=92&conID=509 . WT/TPR/S/372/Rev.1 • Colombia  
 
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  financial intermediaries to meet the credit needs of Colombian enterprises, whether they export or 
not. Abroad, Bancoldex offers financing to buyers of Co lombian goods and services, through 
pre-authorized banks. The interest rate on loans granted by Bancoldex corresponds to the rediscount 
rate granted to the intermediary plus the additional points (spread) agreed between the intermediary 
and the enterprise that received the funds.  
3.138.   The Bancoldex products available to exporters include second -tier credit lines in US dollars 
for export financing, correspondent bank credit, discounting of trade documents, and second -tier 
credit lines in Colombian pesos for both  working capital and investments (Section 3.3.1). According 
to the authorities, exporters account for 26% of the total Bancoldex portfolio. Between 2012 and 
2016, an average of US$491.3 million annually was earmarked for export financing (Table 3.20).  
Table 3.20 Bancoldex: Disbursements to exporters 2012 -2016  
Year Col$ thousand  US$ 
2012  764,564,729  425,176,243  
2013  971,544,586  519,848,352  
2014  1,337,542,894  668,544,142  
2015  1,065,477,973  387,944,515  
2016  1,389,633,856  455,107,341  
Source:  Information provided by Bancoldex.  
3.139.   Colombia has no official export insurance or guarantee programmes. Export credit insurance 
is provided by private insurers. According to the authorities, in November 2017 export credit 
insurance market shares were as follows: Solounión (55.1% of premiums written); Segurexpo, a 
Bancoldex subsidiary (33.8%), Coface (11.0%) and Seguros Mundial (0.1%).  
3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.140.   One of the objectives of the National Development Plan (2014 -2018) is to boost 
competitiveness by diversifying the supply of goods and services and exploiting comparative 
advantages. To this end, Colombia has a range of tax, credit and promotion and support incentives 
used both to attract dome stic and foreign investment and to promote the development of specific 
sectors. The incentive schemes sometimes adjust their terms and conditions according to the type 
of beneficiary. Thus, in Colombia the business segment is classified into micro, small, medium and 
large enterprises; this classification is governed by Law No. 590 of 2000, known as the MSME Law, 
and its amendments (Law No. 905 of 2004).  
3.3.1.1   Credit programmes  
3.141.   Bancoldex offers both financial and non -financial products and services to Colombian 
enterprises, meeting the credit needs of both exporting and non -exporting companies. Bancoldex 
acts as a second -tier bank, providing loans to users through authorized financial intermediaries, 
which include the banking system, financial corporations, finance  companies, credit unions, financial 
NGOs and employee funds in order to promote economic development.112  
3.142.   Bancoldex extends two kinds of credit, namely credit lines and special credit limit 
arrangements. Credit lines may be for working capital and business support and modernization. 
Through credits for working capital and entrepreneurial support, Bancoldex finances, in pesos or 
dollars, the costs, operating expenses and other liquidity needs of businesses for their operations 
and development. These loans may  be granted to both natural and legal persons classed as micro, 
small, medium and large enterprises in all economic sectors for 100% of their needs.113 Loans in 
pesos are for up to five years, including a grace period up to three years, while US dollar loans  are 
                                                
112 Bancoldex is State -owned: 91.9% of the capital is held by the M inCIT, 7.9% by the Ministry of 
Finance and Credit and  0.2% by other shareholders.  As a second -tier bank, Bancoldex supports the financing 
of companies by granting loans through financial intermediaries with a Bancoldex credit line such as banks, 
financial corporations, commercial financing companies, financi al cooperatives, savings and credit cooperatives, 
multi-asset cooperatives, employee funds, compensation funds and specialized micro -credit foundations.  
113 Online information from Bancoldex, viewed at: https://www.bancoldex.com/Modalidades -de-
credito337/Capital -de-trabajo -y-sostenimiento -empresarial.aspx . WT/TPR/S/372/Rev.1 • Colombia  
 
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  granted for up to five years with a grace period of up to one year. Through its business modernization 
loans, Bancoldex finances investment to increase production capacity, improve production 
processes, adopt new technology and innovation and for envi ronmental conservation. These loans 
may be granted to both natural and legal persons in all economic sectors, and to finance 100% of 
their credit needs. They have a maximum term of ten years including a grace period of up to 
three  years for loans in pesos,  and up to ten years including a grace period of up to one year for 
loans in US dollars.  
3.143.   Through its special credit limit arrangements, Bancoldex makes funds available to 
beneficiaries on preferential terms up to a specified limit for a specific need or bu siness segment. 
These credit lines arise out of agreements that Bancoldex signs and executes with ministries, 
municipal authorities, departmental governments and chambers of commerce, among other entities, 
in order to support business development initiativ es, plans and programmes.  
3.144.   In 2016, Bancoldex granted loans totalling Col$3,657 billio n (about US$1.3 billion) 
(Table  3.21), of which 25.6% went to manufacturing, 23.3% to trade, 15.9% to financial services, 
14.2% to transport and 12.3% to other services.114 By type of user, in 2016 34.1% went to SMEs, 
24% to large enterprises, 20.8% to micro -enterprises and 21.1% to others.  
Table 3.21 Loans granted by Bancoldex, by user and sector, 2012 -2016  
(Col$ billion)  
 2012  2013  2014  2015  2016  
Total  3,184  3,731  4,507  3,855  3,657  
Type of user       
Large enterprises  710 663 883 573 877 
SMEs  1,074  1,399  1,356  1,272  1,247  
Micro -enterprises  530 679 625 620 762 
Other  869 991 1,643  1,390  771 
Sectors       
Agricultural and  agro-industrial  59 80 59 62  69  
Wholesale and retail trade  688 887 812 794  867  
Mining  130 35 15 37  60  
Manufacturing  347 887 1,362  765  946 
Financial services  622 949 1,400  1,115  453  
Transport  501 192 301 396  522  
Other services  126 90 70 442  459  
Construction  245 99 99 142  174  
Accommodation and catering services  60 90 68 81 83 
Source:  Bancoldex.  
3.145.   Bancoldex also offers financing for purchasers of Colombian goods and services, through a 
financial intermediary abroad, to finance, in US dollars or euros, up to 100% of the value of the good 
or service. Bancoldex establishes the cost of the resources mad e available under these arrangements 
upon receipt of the formal request from the foreign financial intermediary concerned. The term of 
the financing depends on the type of good or service and the rating assigned to the foreign financial 
intermediary accord ing to the risk conditions in each market. Bancoldex placed Col$ 4,367 million 
through this type of product in 2016.  
3.146.   In addition, through a product entitled Liquidex COP – USD, Bancoldex enables exporters to 
receive advance payment of credit sale invoices  (Table 3.22). The product consists in the discounted 
purchase without recourse of negotiable invoices originating from domestic trading and/or exports 
which are covered by a credit insurance policy issued by Segurexpo de Colombia S.A. or by Solunión 
Colom bia Seguro de Crédito S.A. The operation takes the form of endorsement of the discounted 
invoice in favour of Bancoldex. In 2016, Bancoldex placed Col$22,376 million through this product.115 
                                                
114 Online information from the M inCIT, viewed at: 
http://www.mincit.gov.co/publicaciones/34800/descargar.php?id=77046 . 
115 MinCIT (2017), High -level Councils of Small and Medium Enterprises and of Micro -enterprises, 
Informe Anual de Gestión y Resultados 2016.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 3.22 Bancoldex  Loan Portfolio 2012 -2016  
Product  Description  
Correspondent loan  Finances the purchase of Colombian products and services for companies 
abroad through correspondent entities in each country.  
Second -tier credit line in US$  
for export financing  Provides finance for Colombian businesses with foreign trade activities 
(including operating and production costs, marketing and promotion of 
goods and services) through local financial intermediaries.  
Document -discounting 
instruments  Facilitates export negotiations: purchase of export transaction documents 
covered by insurance or bank guarantee.  
Liquidex COP – US$ Discount purchase of up to 93% of the value of negotiable invoices 
originating from domestic and/or export transactions for goods or services  
covered under the credit insurance policy issued by Segurexpo de 
Colombia S.A. or Solunión Colombia Seguro de Crédito S.A.  
Liquidex production chains  Discounting of negotiable invoices and/or bills of exchange from credit 
sales of goods and/or services i n Colombian pesos.  
Second -tier credit line in Col$ 
for working capital  Finances needs of enterprises engaged in foreign trading, including 
operating and production costs, marketing and promotion of goods and 
services through l ocal financial intermediaries.  
Second -tier credit lines in Col$ 
for investmenta Finances investment plans to improve the productivity and 
competitiveness of exporting companies.  
a These may be standard credit lines at the best terms offered by  Bancoldex and special credit limits 
granting preferential conditions with the support of third parties that contribute resources in order to 
improve the terms and conditions (terms, rates and grace periods).  
Source:  Information provided by the authorities . 
3.147.   The Fund for Financing the Agricultural Sector (FINAGRO), set up under Law No. 16 of 1990, 
provides finance for the agricultural sector. FINAGRO is a semi -public company, organized as a credit 
institution, with its own regime, linked to the Ministry of A griculture and Rural Development and 
supervised by the Financial Supervisory Authority. It acts as a second -tier establishment and 
finances the working and investment capital required for production, marketing and primary 
processing (Section 4.1).116 In addi tion to production, marketing and processing and support 
services for agricultural, livestock, fishing, fish farming and forestry production, financing is available 
for rural activities such as crafts, rural tourism, metal and gemstone working, and mining.  FINAGRO 
also offers emergency funding for farmers in the event of loss of crops or livestock.  
3.148.   Colombia also has loan guarantee funds financed from public resources for various 
production sectors, such as the National Guarantee Fund (FNG) (see below) and t he Agricultural 
Guarantee Fund (FAG).  
3.149.   The FAG guarantees loans and micro -credit to natural or legal persons to finance projects in 
the agricultural and rural sector (Section 4.1). The FAG is also authorized to support operations on 
agricultural and agro -industrial commodity exchanges.117 Guarantees granted by the FAG to 
agricultural producers totalled Col$2,360 billion (about US$840 million) in 2016, in favour of 240,441 
recipients.118 
3.3.1.2   Micro, small and medium enterprises (MSME)  
3.150.   The Colombian authorities have c ontinued to promote the MSME sector during the period 
covered by this review. Law No. 590 of 2000, or MSME Law, and its amendments (Laws No. 905 of 
2004 and No. 1.450 of 2011) provide a set of tools and instruments for this purpose. The aim is to 
promote t he comprehensive development of MSMEs because of their potential to foster job creation, 
regional development, integration among economic sect ors and productive use of small -scale capital. 
The Law also seeks to boost the formation of highly competitive markets by promoting the ongoing 
creation and operation of the largest possible number of MSMEs.  
3.151.   The criteria for determining whether an enterprise is classed as micro, small o r medium -sized 
are its total net worth, measured in SMMLVs,  and number of employees (Table  3.23). Other criteria 
                                                
116 Online information from FINAGRO, viewed at: https://www.finagro.com.co/qui%C3%A9nes -
somos/informaci%C3%B3n -institucional . 
117 Online information from the FAG, viewe d at: https://www.finagro.com.co/productos -y-servicios/FAG . 
118 This amount is included in the total disbursements of FINAGRO. MINCIT (2017), High -level Councils 
of Small and Medium Enterpr ises and of Micro -enterprises, Informe Anual de Gestión y Resultados 2016 . WT/TPR/S/372/Rev.1 • Colombia  
 
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  may also be used, such as the value of gross annual sales; pursuant to Law No. 1.450 of 2011, this 
will become the decisive criterion for the p urposes of the benefits granted to micro, small and 
medium -sized enterprises once the implementing regulations for the Law have been issued. Until 
then, the definitions set out in Law No. 905 of 2004 remain in force.119 
Table 3.23 Classification of enterprises in Colombia, 2017  
Category  Total assets (SMMLVs)  Number of employees  
Micro -enterprise  Up to 500 ( Col$368,858,500)  Up to 10  
Small  Over 500 and up to 5,000 ( Col$3,688,585,000)  10 to 50  
Medium  Over 5,000 and up to 30,000 ( Col$22,131,510,000)  51 to 100  
Large  Over 30,000 ( Col$22,131,510,000)  Over 100  
Note:  SMMLV for the year 2017: Col$737,717.  
Source:  Law No. 905 of 2004.  
3.152.   Law No. 1.429 of 2010 established fiscal incentives to promote the creation of MSMEs, by 
authorizing regional entities to grant special tax treatment (exemption periods, lower rates) 
providing preferential conditions for these enterprises. It also e xempted MSMEs created before 
31 December 2014 from the parafiscal contributions (contr ibutions to the National Apprenticeship 
Service (SENA) and the Colombian Family Welfare Institute (ICBF)), as well as from the Commercial 
Register and income tax for the first two years of operation, and applied a reduced rate from the 
third to the fifth y ear of their operation. Law No. 1.819 of 2016 extended these benefits until 
31 December 2016, and also provided that enterprises employing workers considered vulnerable on 
account of their low employability could discount the value of their parafiscal cont ributions from their 
income tax. Enterprises located in the departments of Amazonas, Guainía and Vaupés are exempted 
for eight years and benefit from reduced rates between the ninth and eleventh year.120  
3.153.   The MSME Law created the framework for financial enti ties specializing in micro -enterprise 
credit to channel their resources into this segment. These resourc es may only be granted to 
micro -enterprises and may not exceed 120  current statutory minimum monthly wage units 
(SMLMVs).  
3.154.   Law No. 1.450 of 2011 created  the Modernization and Innovation Fund for Micro, Small and 
Medium Enterprises in order to promote MSMEs. The Fund operates as a separate account 
management system of Bancoldex.121 Table 3.24 shows Bancoldex disbursements on behalf of 
MSMEs as well as the nu mber of beneficiary enterprises. It may be seen that in 2016 the 
disbursements totalled Col$1,900 billion (about US$680 million) in favour of 114,922 enterprises.  
Table 3.24 Bancoldex: Credit operations for MS MEs, 2012 -2016  
Year/Portfolio type  Number of recipient units  Amount disbursed  
(Col$ billion)  
2012    
SMEs  7,069  1,069.7  
Micro -enterprises  83,200  526,9  
Overall total  90,269  1,596.6  
2013    
SMEs  7,150  1,398.6  
Micro -enterprises  157,866  689.1  
Overall total 165,866  2,087.7  
2014    
SMEs  5,722  1,356.1  
Micro -enterprises  133,014  624.9  
Overall total  138,736  1,981.0  
2015    
SMEs  6,202  1,272.1  
Micro -enterprises  106,239  611.4  
Overall total  112,441  1,883.5  
                                                
119 Article 43 of Law No. 1.450 of 16 June 2011.  
120 Law No. 1.429 of 29 December 2010.  
121 Article 44 of Law No. 1.450 of 2011, amending Law No. 590 of 2000.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Year/Portfolio type  Number of recipient units  Amount disbursed  
(Col$ billion)  
2016    
SMEs  4,600  1,258.0  
Micro -enterprises  110,322  645.9  
Overall total  114,922  1,903.9  
Source:  Bancoldex.  
3.155.   The National Support System for MSMEs, created by Article 3 of Law No. 905 of 2004, 
amending Article 3 of the Law on MSMEs, organizes the mechanisms of financial and non -financial 
support for such enterprises, and consists of the High -level Council of Small and Medium -sized 
Enterprises, the High -level Council of Micro -enterprises and the Regional MSME Councils. The 
High-level Council of Small and Medium -Sized Enterprises, set up under Law N o. 590 of 2000, as 
amended by Law No. 905 of 2004, and regulated by Decision 001 of 2012 and Decision 002 of 2013, 
and the High -Level Council of Micro -enterprises, regulated by Decision 001 of 2012 and Decision  002 
of 2013, consisting of public and private  sector representatives, are intended to contribute to the 
formulation and adoption of general, cross -cutting, sectoral and regional public policies for the 
promotion of MSMEs in order to boost this segment. The Regional MSME Councils are governed by 
MinCIT Resolution No. 3.205 of 2008.  
3.156.   The National Guarantee Fund (FNG), created in 1982, linked to the MinCIT and subject to 
supervision by the Financial Supervisory Authority, is the entity through which the Government 
facilitates access to credit for MSMEs an d purchasers of social housing by providing guarantees 
through over 60 financial entities.122 To obtain an FNG guarantee, the enterprise or interested party 
must apply to the financial intermediary from which it intends to seek a loan.123 All MSMEs legally 
domiciled in Colombia, whether natural or legal persons, are eligible for the FNG. The financing is 
available for enterprises in all economic sectors except for primary agricultural activities. The Law 
on MSMEs authorizes the FNG to grant special guarantee co nditions for enterprises that are 
significant job creators, for 80% of the value of the credit requested by the establishment. 
FNG disbursements during the period 2012 -July 2017 are shown in Table 3.25.  
Table 3.25 Cumulative disbursements by the National Guarantee Fund, 2012 -2017  
(Col$ billion)  
Sectors  2012  2013  2014  2015  2016  2017 (July)  
Commerce  3,951  4,657  4,903  4,711  4,899  2,873  
Construction  643 635 798 848  938  779  
Manufacturing  1,378  1,588  1,597  1,602  1,733  1,078  
Other  553 529 571 517 503  194  
Services  1,838  2,222  2,509  2,340  2,475  1,571  
Transport  551 635 684 656  614  390  
Tourism  275 318 342 265  253  124  
Total  9,189  10,58
4 11,405  10,940  11,416  7,007  
Source:  National Guarantee Fund.  
3.157.   In the course of its first three years of operation, iNNpulsa Colombia, which began in 2012 
as the Development and Innovation Unit (set up under Article 46 of Law No. 1.450 of 2011), 
mobilized resources totalling more than Col$364 billion with 3,859  benef iciaries in the country's 32 
departments. In 2016 iNNpulsa Colombia mobilized an estimated Col$106 billion, of which Col$39 
billion came from the private sector.124 Its primary objective is to foster the growth of production 
sectors by seeking partnerships b etween the public, private and academic sectors as a fundamental 
instrument for promoting innovation. In its activities it uses a set of industrial policy tools, such as 
calls for applications for co -financed, non -refundable resources.  
3.158.   MSMEs are also elig ible for FINAGRO loans and FAG guarantees. In 2016, FINAGRO reported 
disbursements of Col$12,857 billion (US$4.6  million) to a total of 600,752 MSME beneficiaries; 
80.7% of this amount consisted of credit to agricultural and/or rural agro -industrial produc ers and 
                                                
122 The FNG shareholders are: the State, with 62% of the total, Bancoldex, 30%, Findeter, 8%, and 
private shareholders, 0.01%.  
123 Online information from the FNG, viewed at: http://www.fng.gov.co/fng/portal/apps/php/index.get . 
124 iNNpulsa Colombia (2017), Informe de Gestión 2016 . Viewed at: 
https://www.innpulsacolombia.com/sites/def ault/files/informe_de_gestion_2016.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  providers of agricultural support services.125 Over the period 2012 -2015, FINAGRO disbursed a total 
of Col$18,578 billion for MSMEs; guarantees granted by the FAG to MSMEs over the same period 
totalled Col$9,657 billion.  
3.159.   The National MSME System pre sents an annual plan of action for MSMEs defining the 
strategies, programmes and activities to be carried out in the course of the year for these 
enterprises, as well as the resources that will be made available by the various entities comprising 
the Natio nal Support System, in order to foster and contribute to greater productivity and 
competitiveness. Initial estimates under the 2017 Action Plan were for 368,063 enterprises to 
receive approximately Col$17,890  million (US$6.4 million), including both non -refundable and 
refundable resources.  
3.3.1.3   Support for research, development and improved competitiveness  
3.160.   Colombia supports scientific and technological development through the Administrative 
Department of Science, Technology and Innovation (COLCIENCIAS), created under Law No. 1.286 
of 2009. COLCIENCIAS is the agency that runs the National System of Science, Technology and 
Innovation (SNCTI), which is charged with formulating, coordinating and implementing government 
policy on science and technology, as well as fin ancing research, innovation and technological 
development projects and research centres. Decree No. 849 of 2016 redefined the functions of 
COLCIENCIAS and gave it a greater role in the formulation and promotion of science, technology 
and innovation policie s.126  
3.161.   Through COLCIENCIAS, the Government grants tax incentives to persons or enterprises that 
undertake innovation or technological development activities. In order to regulate the benefits 
granted for science, technology and innovation, Law No. 1.286 of 2 009 created the National Council 
on Tax Benefits, which is responsible for laying down the criteria and conditions for designating 
projects as scientific, technological and innovative. The incentives available to those investing 
directly or through researc h or technological development centres recognized by COLCIENCIAS in 
projects classified as scientific, technological or technological innovation projects by the National 
Science and Technology Council, included, until 31 December 2016, the deduction from t axable 
income of 175% of the amount invested in the period in which the investment was made.  
3.162.   The Structural Tax Reform Law, No. 1.819 of 2016, included new provisions for the grant of 
tax benefits in science, technology and innovation, replacing the incom e tax deduction of 175% of 
the value of the investment in the corresponding products by a 100% deduction and a tax discount 
of 25% of the investment made. This benefit applies to investment in new projects as of 
1 January  2017; projects approved prior to t hat date continue to benefit from the 175% deduction.  
3.163.   In order to be able to access these benefits, candidates must reply to the call for applications 
issued annually by COLCIENCIAS between September and December for the allocation of quotas for 
the follow ing fiscal period. If a quota is not fully allocated, a second window is opened that is available 
between March and August for the registration of projects, or a new call for applications may be 
issued.  
3.3.1.4   Special Import -Export Systems or Plan Vallejo  
3.164.   The Pl an Vallejo, or Special Import -Export Systems (SEIEX), is a mechanism under which 
goods may be imported temporarily with total or partial exemption from or suspension of customs 
duties and taxes or deferral or elimination of payment of VAT. The Plan covers imports of inputs, 
raw materials, intermediate goods, capital goods and spare parts used in the production of goods 
for export or for the provision of services directly linked to the production or export of such goods 
or for the export of services. The ben efit consists of the allocation  of an import quota with 
export -linked tax benefits. The import quota on concessionary terms varies according to whether it 
applies to inputs or raw materials and according to the programme. The concessionary nature of 
                                                
125 MINCIT (2017), High -level Councils of Small and Medium Enterprises and of Micro -enterprises, 
Informe Anual de Gestión y Resultados 2016 . 
126 Online information from COLCIENCIAS, viewed at: 
http://www.colciencias.gov.co/quienes_somos/sobre_colciencias/funciones . WT/TPR/S/372/Rev.1 • Colombia  
 
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  these programmes has been considerably eroded by the recent decision to reduce permanently to  
0% the duty applied to capital goods and raw materials not produced in Colombia.   
3.165.   The legal framework of the Plan Vallejo is established by Decree No. 444/67 (raw mater ials 
and inputs), Decree No. 688/67 (capital goods and spare parts) and Decree No. 631/85. The 
Plan Vallejo was extended to services in 2001 by Decree No. 2.331/01, and subsequently Decrees 
No. 2.099/08 and No. 2.100/08. The DIAN was responsible for admini stering the Plan Vallejo 
between 2005 and 2015. Under Decree No. 1.289/15, as amended by Decree No.  1.346/16, this 
responsibility was transferred to the MinCIT. Resolution No. 1.649/16 and Resolution 108/17 
introduced changes in the application of the Plan  Vallejo. Resolution No.  1.649/16 revived the 
Evaluation Committee responsible for formulating and adopting special criteria for the 
implementation and monitoring of the SEIEX programmes. It also provided for submission of 
documentation through the electro nic information system and established that the import quota 
would be monitored electronically with information from the DIAN.  
3.166.   The Plan Vallejo is open to both businesses and business associations. The latter may access 
the SEIEX by fulfilling certain conditions, which include maintaining the independence of each of the 
associates with respect to exchange, tax and customs obligations in connection with their imports 
through the SEIEX.  The import quota assigned to a S ElEX programme in the business associ ation 
category is the average resulting from the evaluation of each of its member companies.  
3.167.   The Plan Vallejo covers several incentive programmes that include export requirements. The 
beneficiaries, whether natural or legal persons, may be entrepreneurs, p roducers, exporters or 
traders. Access to the Plan Vallejo is available to importers of raw materials or intermediate goods 
who produce and export the end product, importers and producers of intermediate products that are 
sold to an exporter, and providers  of services linked with the production of goods for export. The 
benefits consist of tariff exemptions and exemption from or deferral of VAT payment. The export 
commitment conditioning eligibility for the SEIEX programmes ranges from 60% of the products 
produced using the imported raw materials, in the case of the publishing sector, up to 100% of the 
imports in the case of imports under the raw materials or inward processing (maquila) regimes. 
Table 3.26 presents the programmes classified under the Plan Val lejo in 2017.  
Table 3.26 Programmes classified under the Plan Vallejo (SEIEX) in 2017  
Programme  Type of 
programme  Benefits  Guarantee  Export commitment  
Raw materials  MP Do not pay duty  
Do not pay VAT  No 100% of the imports  
MQ Maquila  Do not pay duty  
Do not pay VAT  No 100% of the imports  
MX Publishing 
sector  Do not pay duty  
Do not pay VAT  No 60% of the products produced us ing the 
imported raw materials  
40% domestic invoices  
Capital goods  BR Do not pay duty  
Deferred VAT  No 70% of the increased output (units)  
BK  Payment of 
duty  
VAT deferred  No 1.5 times the value of the quota used  
RR Spare parts  Do not pay duty  
Deferred VAT  
Payment of 
duty 
Deferred VAT  No 70% of production increases  
1.5 times  the value of the quota used  
Services  BS Do not pay duty  
VAT deferred  Yes 1.5 times the value of the quota used  
Replacement  P.V. Junior  Do not pay duty  
Do not pay VAT  No No commitment  
Source:  Information provided by the authorities.  
3.168.   SEIEX operations  involving raw materials and inputs, capital goods and spare parts, and 
exports of services, may take the form of direct or indirect operations. Direct operations are those 
where the person importing the raw materials or inputs, capital goods, intermediate  goods or spare 
parts is directly engaged in the production and export of the good or service. In the case of indirect 
operations, the importer is not the person directly engaged in the production or export of the good 
or service.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.169.   Importers of inputs, raw materials, intermediate goods, capital goods and spare parts under 
a SEIEX programme must carry out their import operations under the programme without exceeding 
the authorized import quota. The total annual quota allocated is renewed automatically under t he 
same terms and conditions established in the SEIEX programme concerned. The f.o.b. value in 
US dollars recorded in each customs declaration is used to establish the percentage of use and the 
remaining balance of the quota.  
3.170.   Beneficiaries registered as major SEIEX  users , authorized economic operators, trusted users 
pursuant to Decree No. 390 of 7 March 2016,127 High Export Users (ALTEX)128, Regular Customs 
Users (UAP)129, and national State -owned companies have a rolling quota under  which the annual 
global quota used is cleared for each period in the same proportion as the exports carried out for 
the current import period, in accordance with the input/output tables of each programme, under the 
same terms and conditions as in the corr esponding authorization. As a result of the changes 
introduced by Resolution No. 1.649/16, large -scale users of the SEIEX programmes may use the 
rolling quota, which enables the users to clear the import quota for the period proportionally to their 
exports .  
3.171.   The products manufactured using raw materials and inputs imported under SEIEX 
programmes must be exported, and shown to have been exported, within 18 months from the date 
of authorization of clearance of the first customs declaration. In the case of t he agricultural sector 
the time -limit may be 24 or 36 months. Capital goods imported under the Plan Vallejo must be used 
for the intended purposes, and the export commitment will be equivalent, in physical units, to at 
least 70% of the increased output gener ated during the period required for 90% depreciation in the 
value of the capital goods. The importation of all capital goods intended for the provision of services 
directly linked with the production or export of goods gives rise to an export commitment in  
US dollars equivalent to 1.5 times that of the f.o.b.  value of the authorized import  quota.  
3.172.   The Plan Vallejo Junior or Replacement Plan created by Article 179 of Decree No. 444 of 
1967 remains in force. It entitles the exporter to import again, free of c ustoms duties and import 
taxes, a quantity equal to the raw materials or inputs used in the production of the exported goods, 
that were imported with payment of import duties and taxes. This right must be exercised within 
12 months from the date of authori zation of the respective export shipment.  
3.3.2   Standards and technical regulations  
3.3.2.1   Institutional and legal framework  
3.173.   The MinCIT Regulation Directorate continues to be the body responsible for policies and 
practices relating to standardization, quality, certific ation, accreditation, designation and metrology. 
The MinCIT coordinates the National Quality Subsystem (SICAL), which is part of the National 
Administrative System for Competitiveness and Innovation and has as its basic objectives to promote 
quality, anima l, plant and human safety, environmental conservation and the competitiveness of the 
production sector, and to protect the interests of consumers. The MinCIT Regulation Directorate acts 
as the technical secretariat of the Intersectoral Quality Commission ( CIC), the body responsible for 
coordinating the work of the public entities involved in the process of creating, implementing and 
enforcing technical regulations in Colombia.  
                                                
127 Decree No. 390 of 7 March 2016 refers to importers, exporters and trusted foreign trade operators, 
as classified by the DIAN risk management system. In addition, importers and exporters must have carried out 
operations involving more than 12 customs import and/or export declaratio ns in each half -year of the 
two years immediately preceding such classification.  
128 The requirem ents for classification by the DIAN as High Export Users (ALTEX) are: (a) enterprises 
must have exported goods of an f.o.b. value of at least US$ 2 million in the course of the 12 months prior to 
submission of the application; (b) the value of these export s must represent at least 30% of their total sales. 
ALTEX enterprises are exempt from the payment of VAT on their imports of industrial machinery not produced 
in Colombia. The classification is valid for five years. This category is gradually being replace d by that of 
Authorized Economic Operator (OEA).  
129 Regular Customs Users (UAP) must have carried out foreign trade operations for an f.o.b. value of 
US$5 million and have submitted at least 100 import or export declarations during the previous 12 months. 
They are entitled to automatic clearance of the imported goods and may import raw materials or inputs under 
the regime of temporary admission for industrial processing. The classification is valid for five years. This 
category is gradually being replaced by  that of the OEA.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.174.   Various public and private sector institutions participate in the SICAL, namely:  (a) the 
Colombian Technical Standards Institute (ICONTEC); (b) the Natio nal Institute of Metrology; (c)  the 
MinCIT; (d) the Supervisory Authority for Industry and Trade (SIC); (e) the entities authorized to 
issue technical regulations (RT); (f) the Nation al Accreditation Organ ization of Colombia (ONAC); 
(g) the Sectoral Standardization Units; (h) accredited certifica tion and inspection bodies; 
(i) accredited Testing and Calibration Laboratories; and (j) other entities with accreditation and 
control functio ns such as the National Food and Drug Surveillance Institute (INVIMA) and the 
Colombian Agricultural Institute (ICA).  
3.175.   In Colombia, standardization is the exclusive responsibility of the Colombian Technical 
Standards Institute (ICONTEC), which is the nation al standardizing body designated by the 
Government. ICONTEC is a private non -profit organization that is backed by the country's production 
sector and is currently a multinational enterprise. ICONTEC has also been accredited for 
RT certification tasks. The  National Accreditation Organization of Colombia (ONAC), c reated by 
Decree No.  4.738 of 2008, under the administrative control of the MinCIT, is the national 
accreditation body. ONAC is a non -profit semi -public entity. The National Institute of Metrology, 
created in November 2011, is the body responsible for scientific and industrial metrology, while legal 
metrology is the responsibility of the SIC, which also supervises compliance with technical 
regulations (RT).  
3.176.   Colombia has notified the WTO that the MinCIT is its national enquiry point under the 
Agreement on Technical Barriers to Trade (TBT). Colombia also notified the WTO that ICONTEC 
accepted the Code of Good Practice for the Preparation, Adoption and Application of Standards in 
July 1995.130  
3.177.   Technical regulations are given legal status through domestic laws and decrees and Andean 
Decisions (Table 3.27). The main legal instruments regulating poli cy in this area are Decrees 
No. 1.595 of 2015 and No. 1.074 of 2015.  
Table 3.27 Legal framework for technical regulations, 2017  
Instrument  Description  
Andean Decision No. 562  Guidelines for the preparation, adoption and application of technical regulations  
Andean Decision No. 376  Andean system of standardization, accreditation, testing, certification, technical regulations and 
metrology  
Andean Decision No. 506  Recognition and automatic acceptance of certificates of product conformity with technical 
regulations issued by accredited or recognized certification bodies  
Andean Decision No. 419  Procedure for reporting technical barriers to trade and notifying technical regulations, 
conformity assessment procedures or other measures of a mandatory nature to be adopted  
Andean Decision No. 615  Notification and Technical Regulation Information System of the Andean Community (SIRT)  
Decree No. 2.269 of 1993  National standardization, certification and metrological system  
Decree No. 1.074 of 2015  Contains the Single Regulatory Decree for the Trade, Industry and Tourism Sector  
Decree No. 1.595 of 2015  Establishes rules for the National Quality Subsystem and amends Chapter 7 and Chapter 8, 
Section  1, of Book 2, Part 2, Title 1, of Decree No. 1.074 of 2015, and establishes other 
provisions  
Source:  Ministry of Trade, Industry and Tourism.  
3.178.   Decree No. 1.595 of 2015 defines four kinds of technical rules: Colombian Technical Standard 
(NTC), Sectoral Technical Standard (NTS), Technical Regulation (RT) and regulatory document. NTCs 
are voluntary rules app roved by ICONTEC. The NTSs are voluntary technical standards drawn up by 
a Sectoral Standardization Unit for a specific sector. RTs are mandatory and issued by the competent 
authority, setting technical requirements, whether directly or by referring to or incorporating the 
contents of a national, regional or international standard, technical specification or code of good 
practice. RTs establish the characteristics of a product or the related processes and production 
methods, including the applicable adminis trative provisions. Regulatory documents establish 
requirements, rules or characteristics for activities or performance, e.g. for assessing compliance 
with an RT.  
                                                
130 WTO document G/TBT/CS/2/Rev.22 of 29 February 2016.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.3.2.2    Standardization  
3.179.   Standardization in Colombia is carried out by ICONTEC, the only entity autho rized to issue 
Colombian technical standards (NTCs).131 ICONTEC was recognized by the Colombian Government 
as the National Standards Body through Decree No. 1.545 of 2015. In addition to standardization, 
ICONTEC provides conformity assessment services (certi fication of management systems, product 
certification, and inspection) as well as health accreditation, and has calibration laboratories.132 
ICONTEC's mission is to promote, develop and guide the applica tion of NTCs and other 
standard -setting documents. ICON TEC represents Colombia in international and regional 
standardization organizations, such as the International Organization for Standardization (ISO), the 
International Electrotechnical Commission (IEC) and the Pan American Standards Commission 
(COPANT).  
3.180.   ICONTEC's standardization work is carried out through 253 standardization committees, 
which have drafted over 6,300 NTCs. There are five stages in the standardization process: 
(a) feasibility and planning; (b) Committee -stage work, in which the study is ca rried out and the 
standard -setting documents are approved in technical standardization committees; (c) public 
consultation; (d) approval, at which stage the document is submitted for consideration by an entity 
that is independent of the committee, in order  to endorse the committee's technical decisions and 
ensure regulatory coherence; and (e) publication and dissemination.133 
3.181.   Sectoral technical standards (NTS) are drafted by the Sectoral Standardization Units (USN), 
whose creation must be approved by the MinCIT Regulation Directorate in accordance with Decree 
No. 210 of 3 February 2003.  
3.3.2.3   Technical regulations  
3.182.   The preparation of technical regulations in Colombia is not centralized and is the 
responsibility of various institutions, primarily ministries, regulat ory commissions and decentralized 
bodies. According to the authorities, as a general rule RTs are based on international good practices. 
Where a public body prepares the RT, each entity has its own internal procedure for the purpose, 
within its sphere of c ompetence; the MinCIT is responsible for regulating products. However, in 
practice similar procedures are adopted pursuant to Decree No. 1.595 of 2015 and the 
recommendations of the Intersectoral Quality Commission. In 2017, the procedure for the drafting 
of RTs was updated through the MinCIT Integrated Management System (SIG). A procedure 
(PAINERT) has since been agreed for the preparation and issuance of RTs, which compiles 
recommendations on good practices in technical regulation.  
3.183.   The authorities have no ted that, in general, draft RTs are submitted for discussion with all 
interested persons or entities. The discussion of the regulatory drafts takes place throughout the 
process of preparing the regulation and up to the international notification of the RT.  Thereafter, the 
procedures established by the TBT Agreement are followed, respecting the established time -frames. 
Thus, since 2001, Colombia has applied the recommended time -limit of 90 days or more for making 
comments on notifications.134 RTs are issued th rough decrees and resolutions, and exceptionally 
through laws. Most RTs reflect or are based on ICONTEC standards, although there are also technical 
regulations based on international standards.  
3.184.   The Supervisory Authority for Industry and Trade (SIC) is re sponsible for monitoring 
compliance with RTs in the following fields: in the area of personal consumer goods, labelling of 
footwear and clothing, and toys, for example; industrial products such as plain and deformed steel 
wire and electrowelded mesh; elect ric and gas -powered equipment subject to energy efficiency 
labelling; corrugated bars and rods; electric fittings; reflective tape for motor vehicles; household 
consumer products such as ceramic tiles and dishware, batteries, refrigerators, freezers and 
pressure cookers ; in transport, products such as public service vehicles, safety belts, safety 
windows, braking systems and tyres; and vehicular natural gas (VNG) and household gas. With 
                                                
131 Decree No. 767 of 7 April 1964 granted ICONTEC the status of Advisory and Coordinating Body for 
Standardization.  
132 ICONTEC (2017), Informe de Gestión y Sostenibilidad 2016 -2017. Viewed at: 
http://www.icontec.org/NC/QS/Documentos%20compartidos/Informe_GyS%202016 -2017.pdf . 
133 Online information from ICONTEC, viewed at: https://portal.icontec.org/content/content -page. 
134 WTO document G/TBT/18 of 17 February 2006.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  respect to RTs and legal metrology, the SIC fixes permitted tolerances for purposes of metrological 
control and establishes the applicable requirements for measuring instrument models or prototypes 
and measurement standards that are to be marketed. The SIC also carries out administrative 
investigations of manufacturers, impor ters, producers and marketers of goods and services subject 
to compliance with RTs, and may impose the corresponding measures and penalties. In accordance 
with Law No. 1.480 of 2011 (Consumer Protection Statute), the SIC may suspend the marketing of 
a spec ific product or service when there is reliable evidence of a risk to the legitimate objective 
which the RT supervised by the SIC is designed to protect.  
3.185.   Producers and importers of products (goods or services) that are subject to compliance with 
RTs which t he SIC is responsible for supervising and monitoring must be registered in the 
SIC Register of Producers and Importers before the products concerned can be placed on the market 
or imported. Registration or updating of the relevant information must be carri ed out through the 
website www.sic.gov.co . Each trading establishment under the same business name is linked to a 
single registration. The Register of Producers and Importers has a public consultation module.135 
The SIC also ensures that conformity assessment bodies register all conformity certificates and 
inspection reports that they issue in the Conformity Certificates Information System (SICERCO).  
3.186.   During the period January 2012 -end 2017, Colombia submitted 62 substanti ve notifications 
to the WTO Information Centre (126 if the addenda and corrections are included). The notifications 
cover the various stages of preparation of technical regulations (draft, approval, etc.), as well as 
their amendments, rejections and implem entation. Most of the RTs are issued by the MinCIT and 
the Ministry of Health and Social Welfare. The criteria most used for the drafting of RTs include the 
protection of human life and health, consumer protection and protection of the environment. In 
December 2017, 105 RTs were in force in Colombia. The products covered include a range of food 
products, additives, fuels, medicines, chemical products, containers and fertilizers, and products that 
have an environmental impact.  
3.187.   Since the previous review in 2 012, when an automatic mechanism for reviewing the expiry 
of RTs did not exist in Colombia, there has been a major change in this area. Pursuant to Decree 
No. 1.595 of 2015, RTs must be reviewed by the regulatory entity in order to determine whether 
they s hould be maintained, modified or repealed, at least once every five years, or earlier if there is 
a change in the circumstances that gave rise to them.  
3.188.   At the Andean Community level, there is the Andean System of Standardization, 
Accreditation, Testing, Ce rtification, Technical Regulations and Metrology, known as the Andean 
Quality System, created by Decision 376 of April 1995, as ame nded by Decision 419 of 30  July 1997. 
The Andean Quality System is intended to eliminate unnecessary technical barriers, and covers 
activities in the fields of standardization, accreditation, testing, certification, RTs and metrology. The 
system is administered by the Andean Quality Committee (CAC), comprising representatives of the 
member countries.136 Standardization activity is  carried out in the framework of the Andean 
Standardization Network (RAN), governed by the regulations set out in Resolution No. 313, whose 
purpose is to harmonize and adopt Andean Standards for the production sectors and services 
deemed of subregional int erest, such as food, textiles and clothing, leather and footwear, wood and 
furniture, and the motor -vehicle sector.  
3.189.   CAN Decision No. 562 of 25 June 2003 establishes guidelines for the preparation, adoption 
and application of RTs in the member countries and  at Community level, in order to avoid RTs 
becoming unnecessary barriers to trade within the subregion. However, RTs are prepared, adopted 
and applied in member countries by the various bodies of the central, regional, departmental, local 
or municipal gove rnments or by a number of them within their respective spheres of competence.  
3.190.   The CAN Notification and Technical Regulation Information System (SIRT), created by 
Decision No. 615 of 2005, is part of the Andean Quality System.137 The SIRT consists of the fo ur focal 
points in member countries and the Community contact point in the CAN General Secretariat, and 
                                                
135 Online information from the SIC, viewed at: http://www.sic.gov.co/registro -de-productores -e-
importadores . 
136 Online information from the CAN, viewed at: 
http://www.comunidadandina.org/Seccion.aspx?id=62&tipo=TE . 
137 Decision No. 615. Viewed at: 
http://intranet.comunidadandina.org/Documentos/decisiones/DEC615.doc . WT/TPR/S/372/Rev.1 • Colombia  
 
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  operates an exporter alert system to warn exporters of mandatory technical requirements.138 
Pursuant to Decision No. 615, notifications concerning RTs adopted, as well as the conformity 
assessment procedures applicable to them, are made through the SIRT. They must be notified by 
the authorities responsible for notification through the SIRT withi n no more than 30  calendar days 
from their official publication. The relevant comments must also be sent through the SIRT.  
3.191.   According to information from the CAN, there is currently an Andean Technical Regulation 
Plan under which the priority subjects for m ember countries are being harmonized. The authorities 
reported that, in February 2018, Decision 562 containing the guidelines for the preparation of RTs 
was being finalized, and all that remained was to reach agreement on the issue of labelling to prove 
conformity with an RT under the conformity assessment procedure of first instance. RTs in the areas 
of footwear and leather goods and clothing are also being harmonized.  
3.3.2.4   Conformity assessment and certification  
3.192.   In accordance with Decree No. 1.595 of 2015, co nformity assessment for products subject 
to RTs is mandatory, and both importers and domestic producers must demonstrate compliance 
through an inspection report or a conformity certificate, whether a first -party certificate issued by 
an accredited body or a certificate issued by a designated body prior to marketing.139 The 
mechanisms and methods for conformity assessment and proof are in general set out in the RT itself, 
and depending on the level of risk may consist in certification, inspection or testing ca rried out by 
bodies accredited or designated by the regulatory body.  
3.193.   At December 2017, there were 27 bodies accredited for product certification (all accredited 
by the National Accreditation Organization of Colombia (ONAC)), 14 accredited for certificatio n of 
management systems and 24 accredited for certification of persons.140 In general, the accredited 
certification bodies subcontract the services of accredited laboratories to assess product conformity. 
Conformity assessment bodies (certification, inspecti on, calibration, testing and assays) established 
in Colombia and accredited in accordance with international practices and rules are grouped in the 
National Association of Conformity Assessment Bodies ( ASOSEC).141 
3.194.   In the case of voluntary certification, ICON TEC, which is a member of ASOSEC,  certifies 
products by means of its ICONTEC Quality Seal. ICONTEC product certification is accredited by ONAC 
in Colombia and by the American National Standards Institute (ANSI) of the United States. ICONTEC 
also offers cer tification of processes and services, as well as agri -food certification. In order to obtain 
the ICONTEC Quality Seal, after receiving a request from an enterprise ICONTEC audits the 
manufacturer's quality system and has the product tested in reliable labo ratories. If the product 
satisfies the quality requirements, ICONTEC issues the corresponding certificate, which is valid for 
three years. After receiving the ICONTEC Quality Seal, the manufacturer must mark the certified 
product with the appropriate logo.  Follow -up audits are subsequently carried out.  
3.195.   Certification by accredited bodies abroad is accepted in Colombia by most ministries and 
agencies. In the case of the MinCIT, certificates issued abroad ar e accepted provided that a 
type-approval or validatio n procedure is followed or there is a mutual recognition agreement. In the 
case of most other public entities, acceptance is conditional upon whether the country where the 
certifying body is located has a mutual recognition agreement with Colombia or is a CAN country, 
and the certifying body is registered with the CAN General Secretariat, in accordance with Decision 
No. 506.  
                                                
138 Online information from the CAN, "Andean Exporter Alert System ", vie wed at: 
http://www.comunidadandina.org/reglamentos/sirt.htm . 
139 A conformity certificate will be valid in Colombia provided: (a) it is issued by the certification body 
accredited by the nat ional accreditation body and the scope of the accreditation covers the product and the RT; 
or (b) it is issued by a foreign certification body accredited by an accreditation body recognized under the 
multilateral recognition agreements to which the nationa l certification body is a party. Otherwise, ONAC must 
check the scope of the accreditation and may declare it to be in conformity with the requirements laid down in 
the corresponding Colombian RT.  
140 Online information from ONAC, "List of Accredited Product  Certification Bodies ", viewed at: 
http://www.onac.org.co/modulos/contenido/default.asp?idmodulo=172& . 
141 Online information from ASOSEC, viewed at: http://www.asosec.org/index.php/asosec/quienes -
somos . WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.3.2.5   Accreditation  
3.196.   Pursuant to Decree No. 4.738 of 2010, accreditation activities may be carried out under 
market conditions by entities e stablished under the rules of private law, in accordance with the 
requirements laid down by the MinCIT. Decree No. 1.575 of 2015 designated the National 
Accreditation Organization of Colombia (ONAC), set up in 2007, as the national accreditation body, 
whose activities and programmes are subject to MinCIT administrative control. ONAC is also the sole 
official source of information about accreditation in Colombia and is responsible for granting, 
maintaining, broadening, restricting, suspending and withdrawing  accreditations. It is the 
compliance monitoring authority on good laboratory practice for the Organization for Economic 
Cooperation and Development (OECD) and acts as the National Accreditation Organization of 
Colombia in accordance with the designation i n Chapter 26 of Decree No. 1.074 of 2015, amending 
Decree No. 4.738 of 2010, and the other legal measures amending, replacing or supplementing 
them.142 
3.197.   ONAC's accreditation work is done in accordance with the NTC ISO/IEC 17011 standard, 
using the generally a ccepted technical rules for each of the modalities of conformity assessment 
bodies. According to the authorities, the implementation of standard ISO/IEC 17011 implies, 
inter alia, the use of control mechanisms to ensure impartiality and transparency as wel l as 
procedures for complaint and appeal resolution.143 
3.198.   ONAC grants accreditation for a three -year period in the case of a conformity assessment 
body that is accredited for the first time. In other cases, and as from the first renewal, accreditation 
is grant ed for five years. In all cases the validity is subject to the results of annual compliance 
audits.144 The Accreditation Certificate is issued by the ONAC Executive Director on the basis of the 
corresponding official report of the Accreditation Committee.  
3.199.   Some other entities still have accreditation powers within their sphere of competence, such 
as, for example, the Institute of Hydrology, Meteorology and Environmental Studies (IDEAM), the 
National Food and Drug Surveillance Institute (INVIMA), the National I nstitute of Forensic Medicine 
and Forensic Sciences, and the ICA. At present, only the IDEAM is engaged in this activity, in 
connection with testing laboratories.  
3.200.   In order to deal with problems of fraud in connection with conformity certificates, the SIC 
established the Conformity Certificates Information System (SICERCO) , governed by SIC Resolution 
No. 41.713 of 1 July 2014, as amended by SIC Reso lution No. 61.971 of 16  October  2014, which 
established the obligation for conformity assessment bodies to ent er in a register maintained by the 
SIC the conformity certificates they issue relating to the RTs supervised by the SIC. In addition, a 
Register of Certification and Inspection Bodies whose accreditation is linked to compliance with RTs 
supervised by the S IC was created. ONAC is responsible for this register.145  
3.201.   At the Andean Community level, accreditation is carried out in the framework of the Andean 
Network of National Accreditation Bodies. The Andean Metrology Network (RAM), created by Decision 
No. 376, as amended by Decision No. 419, has as its general objective the harmonization of the 
National Metrology Systems so that they foster, at Andean level, the traceability of member 
countries' calibration standards and systems and support trade by avoiding the  creation of trade 
barriers.  
                                                
142 Decree No. 1.595 of 2015, which is an integral part of Single Regulatory Decree No. 1.074 of 2015, 
provides that the chief functions of ONAC  as the nationa l accreditation body are, inter alia: (a) to accredit 
conformity assessment bodies that so request, after verifying that they comply with requirements; ( b) to 
implement a monitoring programme that can demonstrate that the accredited bodies are complying wi th the 
requirements underpinning their accreditation; (c) to support the drafting of legislation, regulations and rules 
in the area of conformity assessment; and (d) to act as the OECD compliance monitoring authority on good 
laboratory practice.  
143 Online i nformation from ONAC, viewed at: 
http://www.onac.org.co/modulos/contenido/default.asp?idmodulo=243 . 
144 Online information from ONAC, viewed at: 
http://www.onac.org.co/modulos/contenido/default.asp?idmodulo=242 . 
145 SIC Resolution No. 41.713 of 1 July 2014, Article 1. Viewed at: 
http://www.sic.gov.co/sites/default/files/files/Resolucion_41713_2014.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.3.2.6   Metrology  
3.202.   The SIC is responsible for activities relating to legal m etrology in Colombia. In August  2017 
it received ONAC’s Accreditation Certificate for its mass and volume calibration laboratories, which 
were set up in order t o bolster the country’s metrological control work.  
3.203.   The National Institute of Metrology (INM), created by Decree N o. 4175 of 2011 and regulated 
more recently by Resolution DG N o. 028 of 2016, is responsible for scientific and industrial 
metrology. In order to perform its functions , the INM establishes, coordinates, directs and oversees 
the national industrial quality control, weights, measures and metrology programmes , and organizes 
the quality control and metrology laboratories it needs to carry out its wor k. It also offers the 
technical traceability capability for verifying the quality of products made or marketed in Colombia 
and compliance with international undertakings relating to quality.146 
3.204.   The Colombian Metrology Network (RCM) brings together public and  private testing and 
calibration laboratories, providers of comparison programmes, producers of reference materials, 
natural persons involved in metrology activities and users of metrological products, and is 
coordinated by the National Institute of Metrol ogy.147 Pursuant to Resolution DG N o. 092 of 2014, 
which governs the RCM, the latter's main general objectives are, inter alia, to identify the country’s 
technical metrological capacity in terms of the existing supply, determine the metrological needs of 
Colombian laboratories, and promote and support joint processes and projects to generate the 
products and services that match those needs and requirements.  
3.3.3   Sanitary and phytosanitary requirements  
3.3.3.1    Policy formulation and implementation, legal framework and re sponsible bodies  
3.205.   The formulation and implementation of sanitary and phytosanitary measures (SPS) in 
Colombia falls under the remit of various bodies or agencies that make up the sanitary and 
phytosanitary system, such as the Ministry of Agriculture and Rur al Development (MADR) , the 
Ministry of Health and Social Welfare , the Colombian Agricultural Institute (ICA) , the National Health 
Institute (INS)  and the National Food and Drug Surveillance Institute  (INVIMA). The sanitary and 
phytosanitary system, compose d of the above -mentioned entities, operates on the principle of 
harmonizing policies in the various fields. However, SPS measures are adopted by the risk 
assessment agency, as appropriate. Each of these agencies is attached to a ministry, which 
coordinates  its SPS policies within the Intersectoral Commission on Sanitary and Phytosanitary 
Measures , created by Decree No.  2.833 of 2006 and serving as the National SPS Committee . The 
participants in the Commission are the Ministries of Health and Social Welfare,  Agriculture and Rural 
Development (MADR), Environment and Sustainable Development, the MinCIT and the National 
Planning Department (DNP) . The ICA and INVIMA are regularly invited to participate.  
3.206.   The bodies responsible for issuing SPS measures follow certa in common guidelines, 
including: (a) harmonization with international guidelines issued by reference bodies in the field and 
with CAN rules and regulations; (b) coordinating the implementation of SPS measures with other 
authorities; (c) regulatory best pra ctices; and (d) SPS design and implementation procedure based 
on international standards. Proposed SPS measures must include a technical rationale and be sent 
for fine -tuning to the respective technical division of the agency that formulates the measure. T hey 
then undergo public consultation, on which basis an amended draft resolution is published.  
3.207.   The aforementioned institutions or agencies implement sanitary and phytosanitary policies 
and oversee compliance with the rules in their field of competence, supported by local offices. 
INVIMA, for example, is responsible for the inspection, surveillance and control of medicines, medical 
devices and cosmetics intended for consumption as well as for food safety (including at the time of 
importation), and at the local level it relies on territorial working groups (GTT); the ICA monitors 
plant and animal health.  
                                                
146 Online information from the SIC, viewed at: http://www.sic.gov.co/noticias/laboratorios -de-
metrologia -de-la-superindustria -reciben -certificado -de-acreditacion -por-parte -del-onac. 
147 Online information from th e Colombian Metrology Network. V iewed at: 
http://rcm.gov.co/index.php/normatividad . WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.208.   The Colombian Agricultural Institute (ICA) is a public body with legal personality, 
administrative autonomy and independent resources, belonging to the Nat ional Science and 
Technology System and attached to the MADR.148 The ICA is tasked with issuing SPS measures and 
ensuring that they are harmonized with international guidelines and/or supported by risk 
assessments, so as to protect animal, plant and human he alth and/or life from harmful agents. It is 
also responsible for the prevention, surveillance and control of health, biological and chemical risks 
to animal and plant species, for applied research and for administering, researching and managing 
fishery and  aquaculture resources in order to safeguard human, animal and plant health and ensure 
that proper trading conditions exist.149 The ICA is the competent national authority in matters of 
animal health, plant health and technical control of agricultural inputs ; it also regulates fishing and 
aquaculture.  
3.209.   The ICA is tasked with negotiating bilateral and multilateral sanitary and phytosanitary 
agreements which make it possible to market agricultural products abroad and guarantee the quality 
of agricultural inputs and seeds used in Colombia, while regulating and controlling the use of living 
organisms modified by genetic engineering in the agricultural sector. The ICA lays down guidelines 
and coordinates studies to assess the risks associated with the genetic modifi cation of animals, 
plants and living organisms for the trade in agricultural goods, in accordance with existing 
regulations and protocols. It also undertakes the relevant risk analyses to justify the adoption of 
SPS measures that serve to permit, limit or ban imports. The ICA maintains import and export 
checkpoints at 127 local offices in as many municipalities spread over 32 departments, as well as at 
eight airports, eight seaports and five border crossings. The ICA has 55 laboratories and a quarantine 
station. 
3.210.   The Ministry of Health and Social Welfare (MSPS) is responsible for Colombia's food policy. 
Food legislation in Colombia has been compiled in Decree No.  1.081 of 2015 (Single Regulatory 
Decree from the Office of the President), as amended and supplem ented by Decree No.  270 of 2017. 
Pursuant to Law No.  1.122 of 2007, the INVIMA is attached to the MSPS and has exclusive 
responsibility for the inspection, surveillance and control of food production and processing, 
slaughterhouses, milk collection centres , milk and milk product processing plants, and the means of 
transport associated with these activities.150 Decree No.  2.278 of 2012 created the INVIMA Office of 
International Affairs, which is tasked with formulating and executing plans, programmes and 
strategies to coordinate and manage international cooperation, in conjunction with the competent 
authorities in the spheres of health, intellectual property and international cooperation.  
3.211.   INVIMA also takes part in regulatory activities within its areas of compe tence by putting 
forward proposals to the MSPS for the formulation of policies and regulations concerning quality 
control and sanitary surveillance of the products referred to in Law No.  100 of 1993 and other pieces 
of legislation, and controls and monitor s the quality and safety of the products specified in that 
law.151 INVIMA is empowered to prepare, propose, disseminate and update SPS measures relating 
to inspection, sanitary surveillance, quality control, assessment and sanctioning procedures and 
procedur es relating to sanitary registrations. INVIMA has jurisdiction and is represented throughout 
Colombian territory through 11 regional offices known as territorial working groups (GTT), 13 front 
line checkpoints and seven laboratories. INVIMA serves as the n ational reference laboratory for the 
products within its purview and coordinates the Laboratory Network under its responsibility, 
establishing policies, guidelines, programmes, plans and projects for its operations.  
3.212.   The National Agricultural Health and Foo d Safety Policy for the system of SPS measures is 
contained in document CONPES (MSF) 3.335/2005. The following documents contain policy designs 
specific to the various subsectors: CONPES 3376 and CONPES 3676 – policy on bovine animals; 
CONPES 3458 – policy  on pigs; CONPES 3468 – policy on poultry production; and CONPES 3514 – 
policy on fruits.  
                                                
148 The ICA was established by Decree No.  1.562 of 1962 and restructured by Decree No.  4.765 of 
18 December  2008, as amended by Decree No.  3.761 of 30  September  2009.  
149 Online information from the ICA, viewed at: https://www.ica.gov.co/El -ICA/Funciones.aspx . 
150 INVIMA was established by Law No.  100 of 1993 and its functions l aid down in Decree No.  1.290 
of 1994.  
151 Online information from  INVIMA. V iewed at: https://www.invima.gov.co/nuestra -
entidad/funciones/37 -nuestra -entidad/funciones/72 -generales.html . WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.213.   SPS measures are regulated by an appreciable number of legislative instruments in 
Colombia. The following are the basic regulations that still govern the use of SPS m easures: Law 
No 101 of 1993 (agricultural and fisheries development) and Decrees No.  1.840 of 1994, No.  2.141 
of 1991 and No.  4.765 of 2008 (functions of the ICA), Law No 9 of 1979 and its regulatory decrees 
(animal and plant health and primary food produc tion), Law No 100 1993 establishing INVIMA, 
Decree No.  1.290 of 1994 specifying the functions and establishing the core organizational features 
of INVIMA, and Decrees No.  211 and No.  212 of 2004 and No.  2.078 of 2012 establishing the present 
structure.  
3.214.   As a member of the Andean Community of Nations (CAN), Colombia applies Andean regional 
sanitary and phytosanitary regulations and has taken part in efforts to harmonize them across the 
region. By virtue of the CAN Act on the Unification of Cr iteria(proceeding s of the fifth  meeting of 
government experts in 2011 for the harmonization of sanitary legislation), common procedures were 
adopted for the issuance of phytosanitary and zoosanitary permits and certificates, as well as rules 
for the registration, control, marketing and use of veterinary products. There is an Andean 
Agricultural Health System (SASA) in which framework sanitary activities are carried out among 
member countries to facilitate trade in animals and animal products, as well as to prevent, control 
and eradicate diseases. These actions are coordinated with the Andean Technical Committee on 
Agriculture and Livestock Health (COTASA), whose members are the heads of official veterinary 
services of the competent authorities in member countries responsible  for managing, supervising 
and carrying out animal health activities. Pursuant to CAN Decision No.  515, Colombia and the other 
CAN member countries maintain common SPS measures in respect of plants, plant products, 
regulated items and animals and animal pr oducts.  
3.3.3.2   Notifications to the WTO  
3.215.   The MinCIT is the body responsible for notifying SPS measures to the WTO. Between 
April 1997 (date of the first notification) and late 2017, Colom bia submitted 279 different 
SPS notifications, as well as a series of additio ns to those notifications. During the revie w period, 
47 notifications were made, of which 12 related to animal health, 12 to plants and three to other 
areas, chiefly food, veterinary medicines and fertilizers (Table 3.28). As at 31  December  2017 there 
were 496 SPS measures in force in Colombia. Some of the adopted measures have been in force for 
several years, though some of them are only partially in effect as portions of them have been 
repealed. Measures adopted since 1995 have been notified to the WTO; h owever, measures which 
predate that year are still being applied.  
Table 3.28 SPS Notifications to the WTO, 2012 -2017  
Year Total  Animals  Plants  Food and other areas  
2012  13 3 3 7 
2013  7 1 1 5 
2014  4 2 2  
2015  6 1 1 4 
2016  2 1  1 
2017  15 4 5 6 
Total  47 12 12 23 
Source:  Information provided by the Colombian authorities.  
3.3.3.3   Animal health  
3.216.   The ICA operates the Health Information System for Agricultural and Livestock Imports and 
Exports (SISPAP), which provides  information and makes possible direct participation in the process 
of importing/exporting agricultural and livestock products into/from Colombia. SISPAP enables the 
importer/exporter to familiarize himself in advance with the ICA's import/export phytosani tary and 
zoosanitary requirements. It is also possible to file online applications to obtain the documents for 
each of the requisite procedures, and to monitor the status of import/export applications, modify 
them, and pay for these procedures electronical ly. 
3.217.   Resolution No.  9.942 of 8  August  2016 regulates requests for pest and disease risk analyses 
in the process of importation into Colombia, and defines the situations that warrant a risk analysis. 
These analyses are done before importing items of animal o r plant origin in order to assess the 
probability of the entry, establishment and spread of pests or diseases in Colombia and justify the WT/TPR/S/372/Rev.1 • Colombia  
 
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  introduction of SPS measures so as to allow, limit or prohibit importation. According to ICA 
information, the risk ana lyses will be carried out: (i) if an application is filed for the importation of 
an animal or plant species or products or by -products not previously imported into Colombia when 
there are no mandatory sanitary and/or phytosanitary requirements for imports of animals, plants 
and products originating in a country or region, and when intended for a specific purpose and 
destination in Colombia; (ii) when there is a change in the sanitary or phytosanitary status of a 
country or region of origin; (iii) when new i nformation emerges about a disease or pest; (iv) when 
a country or zone is required to demonstrate that an export product does not pose a significant risk 
to the importing country; (v) when the ICA deems it technically necessary to safeguard the country's 
sanitary or phytosanitary status; and (iv) at the start of a regionalization process.152 ICA risk 
analyses are conducted on the basis of guidelines from the World Organisation for Animal Health 
(OIE), the International Plant Protection Convention (IPPC) and other international reference 
organizations.  
3.218.   As regards animal health, the ICA keeps records of producing companies and contractual 
producers of veterinary medicines, of companies that import veterinary medicines (raw materials 
and finished product) and of  the products themselves, as well as of companies producing and 
importing veterina ry biologics  and veterinary biological products . The ICA also issues free sa le 
certificates for the purposes of domestic and export marketing, and VAT  exclusion certificates for 
biological or veterinary medicines. It also issues the Biosafety Level 3 Agriculture certification, which 
is required for laboratories handling the live f oot-and-mouth disease virus.153 
3.219.   Colombia has agreed sanitary requirements for the admissibility of livestock products with 
31 countries, inter alia,  for the following products: beef and poultry meat, slaughter cattle, eggs, 
bovine semen and embryos, meat mea l, breeding pigs, cooked and smoked bovine meat products, 
and dairy products.154 
3.220.   Under Resolution (ICA) No.  1.558 of 7  May 2010, imports of animals (including aquatic 
animals) and products of animal origin, and of animal feed containing raw material of anima l origin, 
veterinary biological products, biological reagents for veterinary diagnosis and micro -organisms for 
the production of veterinary biologics require an Animal Health Import Document (DoZa), which is 
issued by the ICA.155 Generally speaking, the DoZa  is required irrespective of the quantity being 
imported. Some products of animal origin are nevertheless exempt from this requirement as it is 
considered that owing to their physical make -up and the transformation processes they have 
undergone, they repre sent an insignificant risk for the spread of diseases that might affect the 
country's animal population. The ICA issues resolutions specifying the species and products that do 
not require DoZa in order to be imported (ICA Resolutions Nos.  3.336/2004, 1.418 /2006 and 
2.096/2006), by virtue of the level of sanitary risk they pose for the country. The only animals that 
can be entered without the DoZa are pet dogs and cats. Before animals can be imported they must 
also pass through a quarantine procedure, either  in an official quarantine station or on premises 
                                                
152 Regionalization or zoning is a disease control tool intended to isolate or zone areas free of a disease 
or areas affected by it, assigning a distinct heal th statu s to some regions of a country or stepping up efforts, 
with limited resources, to contain, control and eradicate a disease. Online information from the ICA, viewed at: 
http://www.ica.gov.co/getdoc/fb18dace -21dc-41d1-9733-80057e0f95e6/Evaluacion -del-Riesgo.aspx . 
153 In September  2017 there were two certified laboratories: Limor de Colombia S.A and Empresa 
Colombiana de Productos Veterinarios VEC OL S.A. Online information from the ICA, viewed at: 
https://www.ica.gov.co/getdoc/2cf51f62 -66db-4189-95b9-b5202a853a96/Certificac ion-de-bioseguridad --
Nivel-3.aspx . 
154 The trading partners with which Colombia has agreed sanitary requirements for the admissibility of 
livestock products are: Angola; Aruba; Bolivia (Plurinational State of); Canada; Chile; Costa Rica; Cuba; 
Curaçao; Domin ican Republic; Ecuador; Egypt; Eurasian Customs Union (Russia, Kazakhstan and Belarus); 
Honduras; Hong Kong, China; Iraq; Georgia; Jordan; Lebanon; Libya; M exico; Panama; Paraguay; Peru; 
United Arab Emirates; United States; and Venezuela (Bolivarian Rep. o f). 
155 The list of animal products and products of animal origin that do not require the DoZa to enter 
Colombia is available on the ICA website. These are usually fish, shellfish and fishery products, but also include 
products such as ambergris, antisera, w ool tops, hides, cultures of micro -organisms for non -veterinarian use, 
waste of wool, wool and fine or coarse animal hair (washed), Food preparations for infant use with milk 
content, preparations for sauces, sauces, milk proteins, diagnostic reagents for non-veterinary use and for in 
vitro use in human medicine; animal foetal serums for in vitro diagnosis in human medicine and vaccines for 
human medicine, among others. Online information from the ICA, viewed at: 
https://www.ica.gov.co/getdoc/3b4bbdb9 -53de-49c9-b877-22c5a921dee6/Animales -y-productos -que-no-
requieren -DoZa -para-su.aspx  . WT/TPR/S/372/Rev.1 • Colombia  
 
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  specially equipped for the purpose authorized by the ICA. Both the plant health and animal health 
requirements are set out in ICA Joint External Circular No.  037 of 16  September  2011.  
3.221.   Under Colombian law, a ll imported livestock shipments must be inspected at the point of 
entry. The Health Inspection Certificate (CIS) is issued once the inspection process is complete. Each 
CIS covers the imports contemplated in a single DoZa.156 The ICA veterinarian indicates o n the CIS 
whether or not the product can be authorized from a sanitary viewpoint and, if so, under what 
conditions. In some cases, authorization may be given for the imported products to circulate freely 
in the country, or to circulate after a period in qu arantine on premises or at a quarantine station 
previously approved by the ICA Animal Health Risk Prevention Group. This applies, for example, to 
imports of live animals.  
3.222.   For products that are not exempt from the issuance of the DoZa, the establishment of origin 
must be registered. To that end, an application must be submitted, with the endorsement of the 
veterinary services of the country of origin, and if deemed necessary, a visit to the establishment of 
origin may be required before authorization is gran ted. Once the authorization has been obtained, 
the establishment is registered and may export to Colombia, after obtaining a DoZa. Export 
authorization is granted for one year for businesses that produce animals for animal improvement, 
slaughter animals or  process meat; it is granted for three years in the case of establishments 
engaged in producing animal breeding stock, producing biologics for veterinary use, processing raw 
materials of animal origin for manufacturing animal feed, producing animal feed, p rocessing milk 
and milk by -products and producing fish, crustaceans, molluscs and other aquatic invertebrates.  
3.223.   When products arrive at a point of entry in Colombia, the ICA's Port Health Veterinarian will 
review the required documents, which include: (a) t he original of the DoZa; (b) the original of the 
animal health certificate from the country of origin; and (c) the sanitary inspection or public health 
certificate from the point of exit in the country of origin. In the case of veterinary biologics, an 
internal quality control protocol may also be required of the producer laboratory. Imports of 
veterinary medicines require a valid ICA -issued sales licence or  product registration (Form  3-0 92-A) 
in which the registered party must also be the importer, otherw ise the importer of the goods must 
be duly authorized in matters of animal health. The ICA also imposes requirements relating to 
zoosanitary export certificates, sanitary inspection at the point of exit or entry, registration of genetic 
material production  centres, and import or export registration of inputs.157 If the review of the 
documentation is satisfactory, the imports are then physically inspected. Should there be 
inconsistencies in the documentation that cannot be corrected, the goods must be reshippe d within 
a maximum of five working days.  
3.3.3.4   Plant health  
3.224.   Pursuant to Decree No.  1.840 of 1994, the ICA is charged with managing the Epidemiological 
Information and Phytosanitary Surveillance System (SisFito). The aim of SisFito is to determine the 
presence or  absence of pests within the national territory, for which it has developed an IT platform 
that enables the ICA to consolidate information on the phytosanitary status of the country and the 
surveillance of high -risk exotic pests.  
3.225.   Imports of plants, plant p roducts and regulated items, depending on their risk level, require 
a Phytosanitary Requirements Import Document (DRFI), issued by the ICA and setting out the 
phytosanitary requirements which must be met and which the exporting country must certify for it 
to be possible to export the product to Colombia. To import raw materials, cake, and protein and 
energy supplements for animal consumption it is necessary to obtain the approval of the Safety and 
Veterinary Inputs Directorate of the Animal Protection Divis ion of the ICA. Imports of wild flora 
further require a clearance document issued by the Ministry of the Environment, Housing and 
Regional Development. Importers of seed for sowing and plant propagation material must be 
preregistered with the ICA.  
3.226.   To obtain the DRFI, the importer must file an application through the Health Information 
System for Agricultural and Livestock Imports and Exports (SISPAP). Once the DRFI is obtained, the 
                                                
156 Before the signing and issuance of the CIS, a stamp is placed on the original of the DoZa indicating 
that it has been used, which means that it cannot be used for a new ship ment.  
157 CMC Resolution No.  1.153 of 2008 of the CAN laid down the livestock risk cate gories classified from 
1 (least  risk) to 5 (greatest risk). Colombia requires a DoZa for products in categories 3, 4 and 5.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  importer may apply to the MinCIT for import registration. The DRFI i s issued for a single shipment, 
and must be issued prior to health certification in the country of origin and be valid for 90 days and 
must accompany the imports at the time of their entry into Colombia, as must the originals of the 
phytosanitary certifica te from the country of origin. If the documentation is in order and if the result 
of the phytosanitary inspection is favourable, the Phytosanitary Clearance Certificate (CIS) is then 
issued, and must be delivered to the DIAN so that the inward clearance of  the product may proceed.  
3.227.   Working through the ICA, the MADR is competent to authorize the transboundary movement, 
transit, handling and use of Living Modified Organisms (LMOs) for agricultural, livestock, fishing, 
commercial forestry and agro -industrial pu rposes.158 Decree No.  4.525 of 2005 established the 
regulatory framework for LMOs in keeping with the procedures laid down in Law No.  740 of 2002, 
and established the National Technical Biosafety Committee, which is responsible for assessing the 
risks posed by GMOs. Resolution No.  946 of 2006 lays down the procedure for processing LMO import 
and marketing applications to the ICA. The sale of such products is authorized only following a 
favourable biosafety evaluation. The GMO Detection and Monitoring Laborato ry, which is part of the 
ICA, provides an inspection service at ports and airports to detect genetically modified seeds and 
proteins. Resolution No 3.823 of 4  September  2013 requires the registration with the ICA of all 
laboratories engaging in trials, tes ting and/or veterinary diagnosis, the trial or testing of veterinary 
inputs, agricultural inputs, seed for sowing, propagation material, animal genetic material, pest 
residues, residues of veterinary medicines and pollutants, and trials or tests of genetic ally modified 
organisms in matrices of animal and plant origin obtained in primary production. In July  2013, 
nine resolutions were adopted authorizing the sowing, human or animal consumption or use as raw 
material of products containing GMOs. These product s were cotton, maize and soybeans.159 
3.228.   Under Resolution No.  00148 of 2005, importing or marketing seed for sowing requires 
certification and registration in the National Register of Cultivars. Imports of seeds for sale must 
comply with the quality standards e stablished for each seed species and with the packaging and 
labelling regulations, which require imported seeds to be sold in the original packages with the 
original labels. Resolution No.  3168 of 2015 regulates and controls the production, importation and  
exportation of genetically improved seeds for marketing and sowing in Colombia, and the registration 
of agronomic assessment units and/or plant breeding research units.  
3.229.   Resolution No.  00329 of 2001 prescribes that laboratories which analyse agricultural i nputs 
and pesticide residues must be registered with the ICA. Foreign laboratories must be certified by a 
recognized international body. The national registration of a pesticide requires a risk and 
environmental management assessment and laboratory analysi s certificates. Resolution No.  0150 of 
2003 establishes the arrangements for the registration of imports of finished fertilizer products or 
raw materials for manufacturing them. There are also approval and registration requirements that 
must be satisfied i n order to import fertilizers for experimentation, and certification is required in 
order to be an importer, exporter or seller of fertilizers.  
3.230.   Colombia has established phytosanitary requirements for the admissibility of agricultural 
products in agreement with: Brazil, Chile, Costa Rica, Ecuador, Guatemala, Mexico, Nicaragua, 
Paraguay, Peru, Turkey, the United States and the Bolivarian Republic of Venezuela. The products 
include: coffee beans, pineapple, papaya, flowers, non -genetically -modified soya seed f or sowing, 
celery, spinach, chard and avocado, among others.  
3.3.3.5   Food safety  
3.231.   The MSPS is responsible for Colombia's food policy. Food legislation in Colombia has been 
compiled in Decree No.  1.081 of 2015 (Single Regulatory Decree from the Office of the Preside nt), 
as amended and supplemented by Decree No.  270 of 2017. INVIMA has exclusive responsibility for 
the inspection, surveillance and control of food producing and marketing establishments, 
                                                
158 Law No.  740 of 2002 and Decree No.  4.525 of 2 005. 
159 Resolutions Nos.  3.043, 3.046, 3.047, 3.049, 3.050 and 3.052, all of 5  July 2013, authorize the use 
of different types of genetically modified maize for direct consumption and/or as raw material for the 
production of feedstuffs for domestic animals,  Resolution No.  3.051, also of 5  July 2013, authorizes the use of 
genetically modified soya DAS -68416 -4 for direct consumption and/or as raw material for the production of 
feedstuffs for domestic animals; Resolution No.  3.053 of the same date authorizes th e commercial sowing of 
certain types of genetically modified cotton in the natural subregions of the Magdalena River Valley and the 
Cauca River Valley.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  slaughterhouses, milk collection centres and milk processing plants  in the course of activities 
associated with production, import, export and marketing for consumption. INVIMA certifies the best 
practices and sanitary conditions of establishments producing the aforementioned products, as well 
as their renewal, expansion,  modification and cancellation. It also has exclusive responsibility for 
the inspection, surveillance and control of the safety of imports and exports of foodstuffs and the 
raw materials used in their production, at ports, airports and border crossings, wi thout prejudice to 
the powers assigned by law to the ICA. INVIMA also takes the lead, in coordination with other 
specialized entities, in preparing technical quality standards in its areas of responsibility.  
3.232.   With respect to the safety of processed food, IN VIMA requires sanitary marketing 
registration valid for ten years. The INVIMA is charged with issuing these sanitary registrations, as 
well as with their renewal, amplification, amendment and cancellation. Before sanitary registration 
can be granted, a doc umentary, technical and legal assessment must be made; there is also a 
post-marketing check which can result in the suspension of the registration. Subsequently, every 
batch of product arriving at a Colombian port during the period of validity of the sanit ary registration 
is physically examined by the health authority. A laboratory analysis is required for foods deemed 
to represent a major public health risk.  
3.233.   INVIMA serves as the national reference laboratory in respect of the products within its 
purview an d coordinates the Network of Laboratories under its responsibility, in relation to the 
products specified in Article 245 of Law No.  100 of 1993. It is also responsible for assessing the risk 
factors and taking sanitary measures relating to foodstuffs and t he raw materials used in their 
production and for the sanitary approval of imports and exports of the products within its sphere of 
competence. It is also responsible for enforcing the rules on quality control and sanitary surveillance 
of the products for within its competence.  
3.234.   Importers of food, raw materials or inputs for food intended for human consumption must 
satisfy a series of sanitary import requirements at the point of entry: (a) they must have the import 
approval issued by INVIMA; (b) food being i mported must have the registration, permit or health 
notification issued by INVIMA; and (c) they must submit the Health Certificate or, for products posing 
a negligible risk to public health, the Free Sale Certificate (CVL) from the country of origin. Once  
these requirements are met and in order to issue the Health Inspection Certificate (CIS) for 
importation, INVIMA will verify the health certificate or the CVL from the country of origin and 
undertake a physical inspection of the products, taking samples a nd conducting laboratory analyses 
of foods or food raw materials. If all is in order, it issues the import CIS.  
3.235.   Decree No . 539 of 2014 specifies the requirements that must be met by importers and 
exporters of food for human consumption as well as food raw materials and inputs. Other legal 
instruments governing food safety are: Resolution No . 719 of 2015 classifying foods for human 
consumption according to public health risk; Resolution No . 2.674 containing regulations on (food) 
manufacturing best practices;  Decree No . 1.382 of 2013 laying down the maximum residue limits 
for veterinary drugs in products of animal origin; and Resolution No . 4.506 of 2013 and its 
amendments, establishing maximum levels for contaminants in food for human consumption. As 
regards inspection, surveillance and control, Resolution No . 1.229 of 2015 lays down the model 
frame of reference which incorporates the analysis and management of risks associated with the use 
and consumption of goods and services, including foodstuffs, in order to protect individual and 
collective health. Resolution No . 770 of 2014 of the MADR and the MSPS lays down the guidelines 
for the drafting, implementation and monitoring of the National Subsectoral Plans for the 
Surveillance and Control of Residues in Food . Resolutions Nos.  240, 241 and 242 of 2013 specify 
the sanitary requirements for cattle, buffalo, pigs and poultry, while ICA Resolution No . 2.304 of 
2015 establishes the sanitary requirements for sheep and goats.  
3.236.   INVIMA has a Sanitary Surveillance Contro l System (SIVICOS), a computer application that 
enables users to submit requests and make online payments, and through which officials can issue 
certificates. Moreover, SIVICOS allows INVIMA inspectors to log in and view information concerning 
imports and exports.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.237.   Colombia's general legal framework governing competition protection was maintained during 
the review period, though some regulations were issued relating to procedures for notification and 
pre-assessment of mergers and the whistle -blowing programme, among others. The authorities 
indicated that a draft law is being prepared, in which the Central Government is proposing 
institutional reforms designed, among other things, to increase the power of the competition 
authority to impose penalties. The formulation of competition policy comes within the purview of the 
MinCIT.160 
3.238.   The Supervisory Authority for Industry and Trade (SIC) is the national authority designated 
to apply competition rules.161 The SI C bears exclusive responsibility, inter alia,  for the in camera 
examination of complaints concerning actions that affect competition, for conducting investigations, 
ordering precautionary measures, imposing penalties and ruling on business integration proj ects 
(mergers or concentrations).162 The SIC is also tasked with overseeing compliance with the 
provisions on unfair competition, consumer protection and price controls.163 
3.239.   Law No . 155 of 1959 (Article 1) and Decree No . 2.153 of 1992 (Articles 47, 48 and 50) lay 
down general rules regarding anti -competitive practices. Law No . 1.340 of 2009 is the main policy 
instrument for the protection of competition and the application of competition law. Decree No . 19 
of 2012 introdu ced some changes to the procedures and formalities that must be completed with 
the SIC, while Decree No . 1.523 of 2015 regulated Law No . 1.340 on the whistle -blowing 
programme.  
3.240.   The review period witnessed the execution of many actions envisaged under the N ational 
Development Plan 2014 -2018 to improve implementation of the competition protection regime and 
the functioning of the SIC. Among other things, human resources were increased; an Economic 
Studies Working Group was established164; work began on compilin g SIC administrative acts, the 
regulations and jurisprudence relating to competition protection, all of which will be made available 
on the SIC website; basic sectors were identified in which, exceptionally, the free competition regime 
would not apply (Dec ree No . 1.523 of 2015); and a Working Group on Competition Law was 
established.165 Likewise, Decree No . 1.074 of 26  May 2015 (Chapter 30) designated the authorities 
charged with notifying the SIC of draft administrative acts that are to be issued for regulat ory 
purposes, as well as the applicable rules, so that the SIC can offer a preliminary opinion on the 
potential impact of the regulations on free competition in the markets.  
3.241.   The general competition protection regime is set out in Law No . 1.340, which cover s all 
sectors and economic activities. However, where there are sector -specific rules, they take 
precedence over the general rules. There are specific provisions on anti -competitive practices in 
areas subject to sectoral regulation, namely, the public serv ices (Law No . 142 of 11  July 1994), the 
financial sector (Decree No . 663 of 1993) and the health services (Decree No . 1.663 of 1994).166 
3.242.   Some sectors of the economy have a special status without being exempt from the general 
free competition regime. Law No . 155 of 1959 (Article 1) empowers the Government to authorize 
the conclusion of agreements which, despite restricting competition, are aimed at safeguarding the 
stability of a "basic sector that produces goods and services of interest to the economy as a wh ole". 
Law No . 1.340 provides that the agriculture and livestock sector should be considered a "basic 
sector" for these purposes; however, the authorization of an agreement to stabilize that sector 
requires a binding and reasoned prior opinion from the Mini stry of Agriculture and Rural 
Development.167 Moreover, Decree No . 1.523 of 2015 defines as "basic sectors" for the purposes of 
                                                
160 Decree No.  210 of 2003.  
161 Law No.  1.340 of 2009 assigned this function to the SIC.  
162 The Special Admin istrative Unit for Civil Aviation and the Financial Supervisory Authority deal with 
business mergers in their respective sectors. Laws No.  142 of 1994 and No.  182 of 1995.  
163 Article 6 of Law No.  1.340 of 2009 and Article 1 of Decree No.  4.886 of 2011.  
164 Resolution No.  22.890 of 19  April 2012. Viewed at: http://www.sic.gov.co/estudios -economicos . 
165 Resolution No.  16.424 of 2014.  
166 For more information see WTO (2012), Trade Policy Review of Colombia , Geneva.  
167 Article 5 of Law No.  1.340 of 2009.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Law No . 155 of 1959: the process of production and distribution of goods meant to satisfy the 
Colombian population's needs in term s of food, clothing, health and housing; fuel production and 
distribution; and the provision of banking, educational, transport, electricity, water supply, 
telecommunication and insurance services. No agreements were concluded under Article 1 of Law 
No. 155 of 1959 during the period from 2012 to 2017.  
3.243.   The following State intervention mechanisms are expressly exempted from the application 
of Law No.  1.340: price stabilization funds, parafiscal funds for the promotion of agriculture, the 
establishment of mini mum support prices, the regulation of domestic markets for agricultural 
products, chain agreements in the agricultural sector, the safeguards regime, and the other 
mechanisms envisaged in Laws No.  101 of 1993 and No.  81 of 1988.  
3.244.   Decree No.  2.153 of 1992 se ts out a non -exhaustive list of agreements between enterprises 
that are contrary to free competition, and presumptively unlawful. These include agreements having 
the following purposes or effects: direct or indirect price fixing; determination of discrimin atory sales 
or marketing conditions in relation to third parties; market allocation between producers or 
distributors; allocation of production or supply quotas; allocation, distribution or limitation of sources 
of supply of production inputs; limitation o f technical developments; tied sales; refraining from 
producing a good or service or affecting its levels of production; collusion in bidding or tendering, 
distribution of awards, distribution of tenders or fixing the terms of bids; and preventing third pa rties 
from obtaining access to markets or marketing channels.168 
3.245.   The abuse of dominant position includes: predatory pricing when it is intended to eliminate 
one or more competitors or prevent them from entering the market; the application of discriminatory 
conditions for equivalent operations; tied sales; selling to one buyer on terms different from those 
offered to another where the intention is to reduce or eliminate competition in the market; price 
discrimination; and obstructing or preventing third partie s from obtaining access to markets or 
marketing channels.169 Also prohibited are business integration operations that substantially restrain 
competition while failing to compensate with efficiencies; as well as the acts of unfair competition 
specified in Law  No. 256 which impair or have an impact on the market.170 
3.246.   There is a system for the control of mergers (business integration operations). They must 
be notified in advance to the SIC when: (a) jointly or individually, during the tax year preceding the 
planned  operation, the enterprises wishing to merge have operating income or total assets of more 
than 60,000 current statutory minimum monthly wage units (SMMLVs)171 or (b) jointly hold a 20 % 
or greater share of the relevant market. When enterprises fulfil the ter ms of section (a) but hold a 
less than 20 % share of the relevant market, the operation will be deemed to be authorized, and it 
will suffice merely to notify it to the SIC.  
3.247.   Resolution No.  10.930 of 2015 amended some aspects of the procedures for notificatio n and 
pre-assessment of mergers, including the setting of a maximum time -frame for SIC decisions. The 
prior assessment procedure comprises two phases. In the first, "preliminary study" phase, the SIC 
has 30 days to determine whether: (i) there are no subst antial risks to free competition and the 
operation can therefore be authorized; or (ii) the operation warrants in -depth study. If the SIC 
decides to conduct an "in -depth study" (second phase), it requests the enterprises involved to 
provide the information  prescribed in the In -Depth Study Guide within a period of 15 days. As from 
the date of receipt of all the information, the SIC has three months in which to decide whether to 
authorize, set conditions for or oppose the operation. If deemed necessary, the S IC may, in the 
course of the in -depth study, request information other than that indicated in the In -Depth Study 
Guide, the receipt of which re -initiates the three -month period in which the SIC must make a 
decision. This deadline extension is applied only once (it was previously indefinite), which means 
that a maximum time -frame has been set, and this enhances legal certainty in the procedure.  
3.248.   The SIC may recognize the "efficiency exception" and not oppose an operation if the 
interested companies demonstrat e that the beneficial effects for consumers outweigh the possible 
negative impact on competition, that such effects cannot be achieved by any other means, and 
undertake to pass on the benefits to consumers. It may also not oppose an operation when, 
                                                
168 Article 47 of Decree No.  2.153 of 1992.  
169 Ibid.,  Article 50.  
170 Articles 7 to 19 of Law No.  256 of 1996.  
171 Resolution No.  90.556 of 2016 lowered this threshold from 100,000 to 60,000 SMMLVs.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  indepen dently of the merged enterprise's participation in the domestic market, external market 
conditions are such that they guarantee free competition in Colombia.172 
3.249.   The competent authority is empowered to order the roll -back of a merger when it has not 
been noti fied or when it takes place before the end of the period available to the SIC to make a 
ruling, if it is determined that the operation involves an undue restraint on free competition. 
Similarly, the SIC may order the roll -back of the operation when the con ditions under which it was 
authorized have been infringed. In the period from 2012 to June  2017, 774 company mergers were 
notified. The SIC took 754 decisions; in 97 % of the cases the mergers were approved without 
conditions. In 17 cases conditions were se t for mergers, and on ly one case was opposed. 
(Table  3.29)  
Table 3.29 Business integration operations notified to the SIC, January  2012 -June  2017  
Year  Reported 
integrations  Integration 
decisions  Approved  Conditions set  Objections raised  
2012  162 150 150 0 0 
2013  145 141 138 3 0 
2014  143 145 139 6 0 
2015  135 130 126 3 1 
2016  121 123 120 3 0 
2017  68 65 63 2 0 
Total  774 754 736 17 1 
Source: WTO Secretariat, with information provided by the SIC.  
3.250.   To determine whether the rules of competition have been infringed, the SIC must initiate a 
preliminary inquiry, either ex officio  or at the request of a third party; the outcome of the inquiry 
will determine whether or not it is necessary to launch an inve stigation.173 When the SIC decides to 
launch a formal investigation, it notifies those being investigated so that they may seek or furnish 
the evidence they intend to present. During the investigation, the SIC gathers the requested 
evidence together with any other evid ence it may deem appropriate. The SIC may order 
precautionary measures, including the immediate suspension of conduct that could run counter to 
the regulations on the protection of competition. Once the investigation has been instituted, the 
Deputy Superin tendent of the SIC convenes a hearing at which the parties present the evidence 
gathered in the course of the proceedings and the arguments they intend to make in the light of 
that evidence. After the hearing, a reasoned report is submitted to the Superint endent of Industry 
and Trade indicating whether or not, in the view of the Deputy Superintendent for Protection of 
Competition, there has been an infringement. This reasoned report is not binding on the 
Superintendent. The report is communicated to the par ty under investigation and to interested third 
parties. Finally, the Superintendent issues the resolution that brings the proceedings to a close, after 
meeting with the Advisory Council to hear its recommendations.174 The investigated party may enter 
an appl ication for reconsideration. Appeals may also be filed with the Council of State seeking judicial 
review of the decisions of the SIC on free economic competition.  
3.251.   Under Colombian law, an investigation into restrictive trade practices can be closed early if  
the investigated party offers sufficient guarantees that he will cease or modify the conduct for which 
he is being investigated.175 The authorities indicated that in 2012, four investigations into 
anti-competitive practices were terminated early, as guarant ees were offered. The practices have 
not recurred since then.  
3.252.   The SIC has the power to impose, for each violation and on each in fringer, fines of up to 
100,000  SMMLVs or up to 150 % of the profits derived from the conduct of the infringer, whichever 
is the greater. The SIC is also authorized to impose on any person that assists, facilitates, authorizes, 
executes or tolerates conduct in breach of the rules on the protection of competition fines up to the 
                                                
172 Article 12 of Law No.  1.340 of 2009.  
173 The procedure for determining the existence of an infringement is regulated by Decree No.  2.153 of 
1992, Law No.  1.340 of 2009 and Decree No.  19 of 2012.  
174 The Advisory Council comprises five experts in economic, leg al and/or business matters appointed by 
the President of the Republic. Article 25 of Decree No.  4.886 of 2011.  
175 The investigated party must offer a guarantee before the expiry of the time allowed by the SIC for 
seeking or furnishing evidence.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  equivalent of 2,000 SMMLVs at the time of imposition of  the penalty.176 The imposition of prison 
sentences is not envisaged.  
3.253.   During the period from 2012 to June  2017, the SIC conducted 92 investigations: 19 of them 
were discontinued (because the complaints were either withdrawn or deemed inadmissible) and four 
were closed upon acceptance of guarantees. Penalties were imposed in 72 cases. The average 
duration of the investigations doubled during the review period, which the authorities believe is 
attributable to the growing complexity of cases (Table 3.30).  
Table 3.30 Activities of the SIC, January  2012 -June  2017  
Year Total number of 
investigations and 
decisions  Decisions to 
discontinue 
investigations  Sanctions 
imposed  Guarantees 
accepted  Average time (from 
initiation  to 
decision) (days)  
2012  15 5 10 4 639.2  
2013  13 4 9 0 602.7  
2014  23 1 22 0 859.9  
2015  8 1 7 0 867.5  
2016  19 6 14 0 1,057.8  
2017  14 2 10 0 1,241.9  
Total  92 19 72 4 878.1  
Source: WTO Secretariat, based on information provided by the SIC.  
3.254.   Decree No . 1.523 of 16  July 2015 regulated the whistle -blowing programme by establishing 
the conditions and form in which the SIC may accord benefits to persons who cooperate in detecting 
anti-competitive agreements and other restrictive practices. Benefits may be g ranted provided that 
the applicant: (i) is not the instigator o r promoter of the conduct; (ii)  submits the request to join 
the whistle -blowing programme within  the allotted time -frame; (iii)  signs and complies with the 
agreement on benefits for cooperating  with the competent official; (iv) acknowledges participation 
in the anti -competitive practices and ceases those practices; and (v) provides information and 
evidence that are useful to the investigation and add to what has already been obtained. An order 
of precedence is established for the granting of benefits: the first to cooperate is given full exemption 
from the fine payable, the second is accorded a reduction ranging from 30 % to 50 %; and those 
coming forward subsequently obtain a reduction of up to 25 % of the fine.  
3.3.4.2   Price controls  
3.255.   Colombian laws empower ministries and other government bodies to issue resolutions laying 
down and applying the price policy for goods and services within their respective areas of regulatory 
responsibility (Table 3.31).177 The competent bodies may proceed, ex officio  or at the request of 
interested parties (producers, distributors, importers and consumer associations) to set price or 
margin controls that may be applied at any stage in the production or distribution of a product or 
service.  
Table 3.31 Bodies empowered to apply price controls  
Body  Product or service  
Ministry of Agriculture  Agriculture sector inputs and products  
Ministry of Health  Drugs, pharmaceutical inputs, surgical equipment and products relating 
to the health sector  
Ministry of Mining and Energy  Petroleum and petroleum products, coal, and other minerals  
Ministry of Transport  Urban and suburban passenger and mixed land transport; subsidized by 
the State: intermunicipal and interdepartmental land transport and river 
transport  
Administrative Department of Civil 
Aviation  Domestic air fares  
National Tourism Corporation  Hotels, restaurants, bars and similar businesses  
                                                
176 Articles 2 5 and 26 of Decree No.  1.340 of 2009.  
177 Decree No.  149 of 1976, Decree No.  2.876 of 1984, Law No.  81 of 1988 and Law No.  142 of 1994.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Body  Product or service  
Ministry of Trade, Industry and 
Tourism   Public performances, some manufactures and non -commercial services 
not covered by other entities  
Sectoral regulatory commissions  Household public services: water supply, sewerage and sanitation; 
electricity, gas distribution, basic public fixed telephony and local mobile 
telephony in the rural sector  
Source: WTO Secretariat.  
3.256.   There are three price control regimes that may be applied: direct control; regulated freedom 
and monitored freedom.178 Under the direct control regime, the competent bodies fi x the maximum 
price for producers and/or distributors, after studying the costs of production. Under the regulated 
freedom regime, the competent bodies set the criteria and methodology (including profit margins, 
for example) to enable producers and distrib utors to determine or modify maximum prices. Under 
the monitored freedom regime, producers and distributors are free to set the price of goods and 
services but must notify and justify any price changes to the competent authority, which may reject 
the chang e. Tariffs for household public services may fall under the regulated or monitored regime.  
3.257.   Before issuing regulations on price controls, the competent bodies must inform the SIC so 
that it can issue an opinion on the application of competition law, which i s a preventive mechanism 
to protect the system of free competition. When issuing a price regulation decision, the competent 
body must give its reasons, if applicable, for not accepting the SIC recommendation on the proposed 
price regulation. The authoritie s have stated that during the review period, the SIC evaluated various 
proposed price and tariff regulations and made recommendations in the sectors of transport; 
medicines and medical devices; water supply, sewerage and sanitation; natural gas and electri city. 
3.258.   The SIC is also empowered, before conducting an investigation, to recommend that the 
competent authorities impose price controls in the sectors where there may be restraints on 
competition, and is responsible for monitoring compliance with price cont rols and disseminating 
information in that regard.179 Decree No.  2.876 of 1984 (as amended by Decree No.  863 of 1988) 
classifies infringements of price control rules and establishes the corresponding penalties, which may 
amount to as much as 300 times the va lue of the current statutory minimum monthly wage.  
3.259.   Price controls are currently applied to medicines and medical devices; agrochemicals, milk, 
gasoline, natural gas and liquefied petroleum gas; drinking water; sanitation and electricity. The 
Government has  occasionally entered into agreements with producers to temporarily freeze the 
prices of some food items (red meat, fish, dairy products, eggs, grains and processed foods) in order 
to ensure food security.180 
3.260.   During the period under review, Colombia maintain ed a price control regime for medicines 
so as to make drugs more accessible to the public and lower health system costs on the basis of the 
National Development Plan 2014 -2018 and CONPES Social Document No.  155 of 30  August  2013. 
Before price controls can be applied to medicines, an ad hoc  methodology must be developed and 
implemented for the purpose. Accordingly, in 2013 the National Commission on the Pricing of 
Medicines and Medical Devices (CNPMD) of the Ministry of Health and Social Welfare (MSPS) 
prepa red such a methodology for the system of direct control of medicine prices based on 
international reference prices; it also expanded the list of medicines subject to regulation. In 2015, 
the price control regime was extended to include medical devices. CNP MD Circular No.  01 of 2017 
contains a list of CPI -adjusted maximum sale prices for medicines, valid in 2017. Circular No.  03 of 
22 December  2017 placed a larger number of medicines under direct price control, bringing the total 
to 1,000 drugs currently sub ject to control.181 
3.261.   In 2016 the Government issued a declaration of public interest (a prerequisite for obtaining 
a compulsory licence) regarding a cancer treatment drug patented and produced by a foreign 
company. The Government then decided, using a specific  methodology, to substantially reduce the 
local price of the drug concerned. It did not proceed to issue the compulsory licence, however. The 
possible link between the public interest declaration and the price control entailed by these measures 
                                                
178 Law No.  81 of 23  December  1988.  
179 Online information from the SIC, viewed at http://www.sic.gov.co/control -de-precios . 
180 Those controls were applied from 12  December  2016 to 15  January  2017.  
181 CNPMD Circular No.  03 of 22  December  2017. Viewed at: 
https://www.minsalud.gov.co/sites/rid/Lists/BibliotecaDigital/RIDE/DE/DIJ/circular -03-2017.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  caused conc ern in the pharmaceutical industry.182 In response to those concerns, the Government 
issued Decree No.  670 of 2017 making the procedure for public interest declarations stricter and 
more systematic. This ruled out the possibility that declarations could be u sed as a pretext for 
imposing price controls on the drugs concerned.  
3.3.5   State trading, State -owned enterprises and privatization  
3.3.5.1   State trading  
3.262.   Under the Constitution and pursuant to various laws and decrees183, Colombia's territorial 
subdivisions, known as depa rtments, enjoy autonomy for exercising a monopoly on spirits , provided 
that the revenue obtained from that monopoly is primarily earmarked for education and health 
services. In this framework, departmental distilleries produce alcoholic beverages for consu mption 
in their own department, for distribution to other departments (subject to authorization) and for 
export; they also import raw materials for production.184 However, private traders may engage in 
import and export activities on the basis of permits or contracts.  
3.263.   Prior to the entry into force of Law No.  1.816 of 19  December  2016, departmental distilleries 
set their own conditions in the contracts authorizing the introduction and marketing of spirits in their 
territory, such as, for example the quantity o f spirits that could be distributed, the department's 
percentage share in the sale price of the products and, on occasion, the minimum sale price. They 
could also refuse entry to a particular outside brand.  
3.264.   Law No.  1.816 of 2016 introduced new regulations on instruments through which distilleries 
may exercise a monopoly on spirits  with discretion to allocate revenue. The new regulations prescribe 
that decisions taken by the departments in the exercise of the monopoly must be in accordance with 
the principles of non -discrimination, free competition and market access. The instruments  through 
which the monopoly is exercised are import/distribution permits and production contracts. Law 
No. 1.816 sets out the requirements and procedures for permit applications and the issuance of 
permits and for the conclusion of contracts. It is express ly prohibited to set minimum or maximum 
shares of the quantity of spirits that can be introduced or to set minimum sale prices. All departments 
are required to apply the requirements and procedures in a transparent and uniform manner and 
must guarantee the  interested parties the right to challenge their decisions.  
3.265.   Departments that exercise the monopoly on spirits collect a share of the sale price of the 
products covered by the monopoly and sold and consumed in their jurisdiction, as well as operating 
fees p aid by producers and importers who have been awarded contracts or granted a permit.185 
Operating fees on production are set through a public tendering procedure, under which the 
Departmental Assembly is able to set their level as a minimum percentage of sale s. Operating fees 
on distribution are equivalent to 2 % of annual sales of the imported spirits. In both cases, the 
operating fees must be the same for all products and may not depend on volume, price, brand or 
type of product.186 The duration of production c ontracts ranges from five to ten years and they are 
renewable once for up to half of the initial duration, while distribution permits have a term of 
ten years, renewable for the same length of time.  
3.3.5.2   State -owned enterprises and privatization  
3.266.   Through its equ ity stakes in different enterprises, the State plays an important role in the 
Colombian economy. At the end of 2016, there were 119 enterprises in which the Government held 
a direct equity st ake, with assets worth Col$61.3 billion (approximat ely US$20.3 mi llion) and 
27,000  employees (Table 3.32). The Government held a majority stake in 40 enterprises, which 
generated revenue equivalent to 9.6 % of GDP.  
                                                
182 Business and Industry Advisory Committee to the O ECD, online information from Insidetrade , viewed 
at: https://insidetrade.com/sites/insidetrade.com/files/documents/oct2017/wto2017_0343a.pdf . 
183 Article 336 of the Political Constitution of Colombia, Article 61 of Law No.  14 of 1983, Decree 
No. 1.222 of 1986, Law No.  223 of 1995, Law No.  788 of 2002 and Law No.  1.393 of 2010.  
184 WTO document G/STR/N/16/COL of 1  June 2017.  
185 In the case of departments that d ecide not to exercise the monopoly over distilled spirits, the latter 
must be made subject to the excise tax on spirits, wines, aperitifs and the like.  
186 Articles 8 and 17 of Law No 1.816 of 2016.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.267.   The sectors in which the activities of national State -owned enterprises are mainly 
concentrated are hydroca rbons, energy (electricity) and financial services; in addition, the State has 
numerous smaller holdings in the transport, communications and agriculture and livestock sectors. 
The largest State -owned enterprise is ECOPETROL S. A., which operates in the hy drocarbons sector, 
followed by Interconexión Eléctrica S.A. E.S.P . (ISA). These are the only two  national State -owned 
enterprises listed on the Colombia Stock Exchange.  
Table 3.32 State -owned enterprises by sector and State holding, 2016  
Sector  State -controlled (A)  Minority stake (B)  Total (A+B)  
Total number 
of controlled 
enterprises  Total equity 
adjusted for 
State holdinga Total number 
of enterprises 
with a minority 
stake  Total equity 
adjusted for 
State holdinga Total 
number of 
enterprises  Total equity 
adjusted for 
State holdinga 
Agriculture  2 176,369  16 232,232  18 408,601  
Energy  12 8,992,863  11 142,239  23 9,135,102  
Financial  13 12,210,360  3 9,521  16 12,219,881  
Hydrocarbons  1 38,647,654  0 0 1 38,647,654  
Telecommunications  3 226,455  6 -104,473  9 121,982  
Transport  3 -91,353  33 104,124  36 12,771  
Health  4 377,082  0 0 4 377,082  
Other  2 328,463  10 92,600  12 421,063  
Grand total  40 60,867,893  79 476,243  119 61,344,136  
a Col$ million.  
Source:  Consolidator of Fiscal and Public Financial Information (CHIP) and data submitted by the ministries.  
3.268.   Broadly speaking, there are two types of State -owned enterprises: State Industrial and 
Commercial Enterprises (EICEs) and Semi -Public Companies (SEMs). EIC Es are created by law, with 
a State holding of 90 % or more; the SEMs are incorporated as commercial companies with public 
and private participation.187 Both types of company are governed by private law, although there are 
several laws that provide for except ions (for example, regarding their debt capacity and budget 
management). State -owned enterprises are regulated and supervised by different ministries, 
commissions and supervisory authorities, usually depending on the sector in which they operate. 
The legal  and institutional framework governing State -owned enterprises is therefore complex and 
fragmented. According to a recent government study, the Colombian State is facing major challenges 
relating to the discharge of its function as owner and the capacity o f State -owned enterprises to 
generate economic and social value, given the low standards of corporate governance and the 
rigidities in the regulatory framework that governs them.188 
3.269.   During the review period Colombia took steps to meet these challenges and ad dress the 
recommendations of the OECD, with a view to joining that organization.189 In November  2015, the 
Central Government published the General Policy on National State -owned Enterprises (CONPES 
Document No.  3851) for the main purpose of progressing towar ds a model of corporate governance 
in State -owned enterprises that is structured, clear and efficient, based on accountability between a 
single owner and the boards of directors of the enterprises, and in which the boards are assured of 
autonomy as the hig hest decision -making bodies in the enterprises. The CONPES document sets out 
a road map and specific lines of action focused on two core areas: strengthening the role of the 
Central Government as owner and enhancing corporate governance and the regulations  governing 
State -owned enterprises so as to provide them with an enabling environment in which to create 
value.  
3.270.   The new policy is now being implemented. Decree No.  2.384 of 11  December  2015 
established the General Directorate for State Holdings (DGPE) with in the Ministry of Finance and 
Public Credit in order to centralize the functions of business ownership in that Ministry's portfolio 
and take the lead in the activities envisaged in CONPES No.  3851. This is part of a pilot plan that 
will lead to the creati on, in 2019, of a national body to act as owner of all State -owned enterprises. 
Other advances include the creation by the DGPE of technological tools to consolidate information 
                                                
187 Law No.  489 of 1998 stipulates that if the share of State  capital in an SEM reaches or exceeds 90 %, 
it will be placed under the EICE regime.  
188 CONPES, Política General de Empresas Estatales del Orden Nacional  (General Policy on National 
State -owned Enterprises), CONPES Document No.  3851 of 23  November  2015. View ed at: 
https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/3851.pdf . 
189 OECD (2015), OECD Review of the Corporate Governance of State -owned Enterprises. Colombia . 
Viewed at: http://www.oecd.org/corporate/oecd -review -corporate -governance -soe-colombia.htm . WT/TPR/S/372/Rev.1 • Colombia  
 
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  and monitor the management of State -owned enterprises, the preparation of a gl obal strategy for 
determining which enterprises are strategically important to the State and which are not, and 
undertaking company reorganization processes or divesting unprofitable, non -strategic or high -risk 
assets.  
3.271.   Article 60 of the Constitution and Ar ticle 3 of Law No.  226 of 1995 prescribe that in divesting 
its holding in an enterprise, the State will give preference and offer special conditions to workers 
and solidarity -based organizations for assuming ownership. The Government periodically submits t o 
Congress an asset disposal plan listing companies and equity stakes that could be privatized. There 
were few privatizations during the period of this review, but some of the enterprises disposed of 
were of high value. In January  2016, for example, the St ate sold its majority stake (57.6 %) in 
ISAGEN, the country's third largest electricity generator, for US$2,000  million. In addition, 
December  2016 saw the conclusion of the sale of the ECOPETROL equity holding in Interconexión 
Eléctrica S.A. E.S.P. (ISA), equivalent to 5.3 % of that company's subscribed and paid -up capital, for 
an approximate value of US$170  million.  
3.3.6   Government procurement  
3.3.6.1   Overview  
3.272.   Government procurement is of major importance in the Colombian economy as it accounts 
for more than 15 % of GDP, according to information provided by the authorities. It also serves to 
promote domestic industry and employment.  
3.273.   Colombia is not a signatory to the WTO plurilateral Agreement on Government Procurement, 
but is an observer in the Committee. Colombi a has made government procurement commitments 
under several of the trade agreements to which it is party (for example, with the European Union, 
the United States, the Republic of Korea, Chile an d the countries of the Northern  Triangle, among 
others).  
3.274.   Durin g the period under review, Colombia pursued its efforts to upgrade the government 
procurement system in order to make it more efficient and transparent. The principal changes 
include establishing the National Government Procurement Agency (hereinafter Colombia Compra 
Eficiente  (Colombia Buys  Efficiently)); developing and codifying procurement best practices; 
implementing pricing framework agreements; advances in the Electronic System for Government 
Procurement (SECOP) with the creation of a platform allowin g the entire procurement process to be 
carried out online, and the establishment of the Government's E -Store ( Tienda Virtual del Estado ). 
Some amendments were also made to the regulatory framework for government procurement.  
3.275.   Colombia Compra Eficiente  is a special administrative unit attached to the National Planning 
Department (DNP), created by Decree -Law No.  4.170 of 2011. It is in part a response to the need 
for a national body responsible for formulating government procurement policy and promoting 
unifor mity among practices followed by contracting bodies.190 Its functions include, inter alia: 
proposing to the Central Government procurement policies, plans, programmes and rules in order 
to achieve greater efficiency and transparency and optimum use of govern ment resources; preparing 
studies, diagnostic analyses and statistics; handling queries on the application of general rules and 
issuing external circulars relating to government procurement; developing and managing the 
SECOP; and drawing up, organizing and  entering into pricing framework agreements and other 
mechanisms for aggregating demand.191 
3.3.6.2   Regulatory framework  
3.276.    The general procurement regime is governed mainly by Law No.  80 of 1993 (General 
Government Procurement Statute) and Law No.  1.150 of 2007. Thes e two laws lay down the 
principles and rules governing procurement by most State entities.192 Nevertheless, some entities, 
                                                
190 CONPES Documents No.  3.186 of 2002 and No.  3.249 of 2003.  
191 Decree -Law No.  4.170 of 2011.  
192 The general regime applies to ministries, departments, departmental governments, municipal 
authorities, special administrative units, public institutions, agencies, territorial partnership schemes and other 
government entities; the  Senate of the Republic and the House of Representatives; the Higher Council of the 
Judiciary and the Office of the Public Prosecutor ; the National Civil Status Registry and the National Electoral WT/TPR/S/372/Rev.1 • Colombia  
 
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  for example residential public utility service providers and other State -owned enterprises, are 
subject to special regimes, which gener ally reflect the rules of procurement under private law. 
Similarly, some types of procurement such as postal services, and television and radio broadcasting 
services, among others, are governed by special laws.  
3.277.   Decree No.  1.082 of 26  May 2015 compiles and regulates the legislation governing the 
general government procurement regime and also contains some provisions applicable to the special 
regimes.193 The regulatory framework also comprises Laws No.  361 of 1997, No.  590 of 2000, 
No. 816 of 2003, No.  1.474 of  2011 and Decree -Law No.  19 of 2012, as well as the Colombia Compra 
Eficiente  Circulars. The "Síntesis" application, created on the Colombia Compra Eficiente  website, 
contains the regulations and jurisprudence relating to government procurement.194 To identi fy and 
encourage best practices in government procurement, Colombia Compra Eficiente  prepares manuals, 
guides and model documents (including the Guide for participation by foreign suppliers in 
procurement procedures, the Manual of incentives in procurement  procedures, and model 
contracts).195 
3.278.   To enter into contracts with the State, interested persons, whether natural or legal persons, 
Colombian or foreign with domicile in Colombia, must be enrolled in the Single Bidders Register 
(RUP). Branches of foreign companies must submit accounting and financial information pertaining 
to their parent company in order to enrol. Registration is possible through any Chamber of Commerce 
in the country. Once the Chamber concerned has verified that the interested party sati sfies the 
eligibility requirements (experience, legal, financial and organizational standing), it issues a RUP 
certificate.196 Registration must be renewed every year. Enrolment in the RUP is not required for 
single tendering, or if the contractor is a forei gn natural or legal person without domicile in Colombia, 
among other cases.  
3.279.   The regulations provide for five procurement methods197: (i) open tendering; (ii) abridged 
selection; (iii) merit -based competition; (iv) single tendering; and (v) minimum amount. As  a 
general rule, contractors must be selected by open tender, except in those cases expressly stipulated 
by law in which the contractor is chosen using some other procurement method.198 Abridged 
selection uses simplified procedures to ensure efficient contra ct management and applies mainly to 
the purchase of goods and services that have uniform technical characteristics and are commonly 
used by the entities.199 The merit -based competition method is used to select consultants or projects 
in which technical crite ria and professional qualifications are paramount.200 
3.280.   Single tendering, regarded under the law as an exception for situations where there is no 
viable competitive bidding procedure, is used in the following cases: manifest urgency; loan 
procurement; inter -administration contracts, procurement of goods and services in the defence and 
security sector, which require confidentiality; contracts for the development of scientific and 
technological activities; contracts for fiduciary services; where there is only one  bidder; rental or 
purchase of real estate; and provision of professional and management support services. The 
minimum amount method is used for purchases that do not exceed 10 % of the procuring entity's 
                                                
Council; State entities belonging to the supervisory bodies ; the National Civil Service Commission; the Regional 
Autonomous Corporations; and any other government agency or department that is empowered by law to 
enter into contracts.  
193 Decree No.  1.082 of 2015 incorporates the provisions of Decree No.  1.510 of 201 3 and repeals it.  
194 Online information from Colombia Compra Eficiente . Viewed at: 
https://sintesis.colombiacompra.gov.co . 
195 All manuals, guides and model documents are available on the Colombia Compra  Eficiente  website . 
Viewed  at: https://www.colombiacompra.gov.co/manuales -guias -y-pliegos -tipo/manuales -y-guias . 
196 Article 2.2.1.1.1.5.1 et seq.  of Decree No.  1.082 of 2015.  
197 Law No.  1.150 of 2007, Decree No.  2.474 of 2008 and Decree No.  1.082 of 2015.  
198 Article 2 of Law No 1.150 of 2007.  
199 Abridged selection is also used in the following cases: low -value contracts; contracts for the provision 
of health service s; procurement where the open tendering procedure has been declared void; disposal of State 
property; purchase of products of agricultural origin or use; transactions and contracts having as their direct 
object the own activities of State -owned industrial and commercial enterprises and of semi -public companies; 
the contracts of entities responsible for the implementation of programmes for the protection of persons under 
threat, demobilization and reintegration, displaced people, protection of human rights a nd people with some 
degree of exclusion; and the procurement of goods and services for national defence and security.  
200 Open competition or prequalification systems may be used in merit -based competitions.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  low-value amount, determined on the basis of its ann ual budget; in such cases, an invitation to 
tender is published.  
3.281.   As shown in Table 3.33, although the total value of contracts awarded by open tendering 
increased steadily over the first four years of the review period, it declined appreciably as of 2016. 
The value of contracts awarded through single tendering held steady at a level significantly above 
that of contracts awarded through open tendering and other procurement methods. In 2017, the 
gap widened even further, as the value of contracts awarded thro ugh single tendering was fourfold 
that of contracts awarded through open tendering.  
Table 3.33 Value of contracts awarded, by procurement method, 2012 -2017  
(Col$  million)  
Year Open 
tendering  Abridged 
selection  Merit -based 
competition  Single 
tendering  Minimum 
amount  
2012  11,458,570  6,818,757  1,162,318  23,387,375  1,812,103  
2013  19,629,502  7,716,541  1,991,043  44,985,256  2,074,319  
2014  22,738,614  9,830,543  2,153,304  42,094,794  2,237,695  
2015  33,744,529  11,419,393  2,812,156  43,869,565  2,215,157  
2016  12,655,064  7,714,534  1,269,535  32,643,483  2,085,383  
2017 11,678,336  9,483,046  2,041,439  46,370,056  2,279,925  
Source: WTO Secretariat, with information provided by the Colombian authorities.  
3.282.   In open tendering procedures, State entities may use the reverse auction mechanism for the 
submission of all or some of the bids, in which case this must be indicated in the tendering 
documents. In the case of abridged selection for the purchase of goods and servi ces with uniform 
technical characteristics, State entities must use the reverse auction procedure or that of purchasing 
on commodity exchanges, or pricing framework agreements.201 The requirement to use framework 
agreements applies to executive branch entiti es; on the other hand, it is optional for legislative 
branch entities and for territorial entities and autonomous agencies. Colombia Compra Eficiente has 
developed various pricing framework agreements on goods and services.  
3.283.   During the review period, the ru les relating to the announcement of government 
procurement procedures were reinforced and standardized. Since 2013, State entities have been 
required to draw up an annual purchasing plan and to publish it on their website and in the SECOP. 
Likewise, they a re required to publish all the administrative documents and decisions relating to 
their government procurement procedures within three days of their issuance. State entities must 
publish, in a timely manner, the call for tenders or the invitation to partic ipate in minimum amount 
procurement procedures as well as the draft tendering documents, so that interested parties may 
submit comments or seek clarifications. Under the law, tendering documents are free of cost.  
3.284.   Article 3 of Law No.  1.150 2007 stipulates that the SECOP is the single portal for information 
regarding government procurement and must allow procurement procedures to be conducted online. 
Significant headway was made in this regard during the review period. The system now has 
three  platforms: SEC OP I, SECOP II and the Government's E -Store. Through SECOP I, State entities 
publish all documents relating to procurement procedures, and these may be viewed online by the 
general public. The authorities have indic ated that in 2016, over  900,000  procureme nt procedures 
were published via SECOP I.  
3.285.   SECOP II, which came into operation in March  2015, is an e -procurement platform that 
enables State entities to conduct the entire procurement procedure online, from the planning 
through to the management and settle ment stages of the contract; it also enables suppliers to 
submit their bids and comments and to obtain information regarding business opportunities. As at 
31 December  2017, 1,698 State entities were registered in SECOP II and 24,054 procurement 
contracts h ad been awarded for a value of Col$3,670.4  billion. The third platform is the Colombian 
Government's E -Store, which State entities can use to make purchases of goods and services based 
on pricing framework agreements and other mechanisms for aggregating de mand, developed by 
Colombia Compra Eficiente .202 Between October  2013 when the E -Store was created and 
31 December  2017, State entities made appreciable savings on their purchases. The cumulative 
                                                
201 Article 2 of Law No 1.150 of 2007.  
202 The goods a nd services available in the Colombian Government's E -Store may be viewed at: 
https://www.colombiacompra.gov.co/tienda -virtual -del-estado -colombiano . WT/TPR/S/372/Rev.1 • Colombia  
 
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  savings for that period were Col$1,280.8  billion, according to  information furnished by the 
authorities.  
3.286.   As regards the evaluation of bids, the regulations provide that the most favourable bid will 
be chosen, in accordance with the selection method. In bidding and abridged selection for low -value 
amounts, the most fa vourable bid can be determined in two ways: (a) by weighting the elements of 
quality and price based on points or formulas; or (b) by weighting the elements of quality and price 
that represent the best cost -benefit ratio. If the state entity opts for (b), it must indicate in the 
tendering documents: the minimum technical and economic conditions for the bid; the additional 
technical conditions that represent quality or operational advantages; the additional economic 
conditions representing advantages that ca n be valued in money terms; and the money value that 
the State entity assigns to each additional technical or economic advantage. The entity must then 
calculate the cost -benefit ratio for each bid by subtracting from the total tender price the money 
value assigned to each of the additional economic and technical conditions offered. The best 
cost-benefit ratio will be that of the bid that obtains the lowest result. In the case of procurement of 
commonly used goods and services with uniform technical characte ristics, the price is the only 
determinant , whereas when consultants are being selected, technical factors are valued over 
price.203 
3.3.6.3   National preferences  
3.287.   Colombia uses the government procurement regime as a tool for boosting domestic industry 
and employment,  and for promoting the participation of Colombian micro, small and medium 
enterprises (MSMEs) in procurement procedures by applying preference margins and criteria for 
breaking tie bids . 
3.288.   Law No.  816 of 2003 establishes preference margins (or points) to pro mote domestic goods 
and services and incorporate Colombian components into foreign goods and services, and requires 
State entities (except residential public utility service providers) to set out the relevant preferences 
in the procurement documents. The p reference margin is between 10 % and 20 % of the total score 
for tenders of Colombian goods and services, and between 5 % and 15 % for tenders for foreign 
goods and services incorporating Colombian goods and services components.204 These preference 
margins also apply to goods and services to which national treatment must be accorded under the 
Andean Community regulations or pursuant to trade agreements.205 In the case of countries with 
which Colombia has no trade agreements, national treatment is subject to the pri nciple of 
reciprocity.206 
3.289.   For the purposes of applying the preferences, Colombian goods are deemed to be those 
recorded in the Register of Producers of Domestic Goods (RPBN), which is maintained by the MinCIT. 
Under Decree No.  2.680 of 2009, which regulates the RPBN, "domestic goods" are: products of 
nature wholly obtained on national territory; goods processed in Colombia using local materials; and 
goods that have undergone substantial transformation, whose domestic value added is 40 % or 
higher. Colombian se rvices are deemed to be those provided by Colombian natural persons or natural 
persons resident in Colombia or by legal persons incorporated under Colombian law, irrespective of 
the origin of their capital.  
3.290.   Colombian regulations also provide for the granti ng of preferences in the case of tie bids.207 
Hence, when there is a tie between two or more bids in terms of the qualifying factors laid out in 
the tendering documents, the State entity must award the contract by successively applying the 
following criteria : to the offer of domestic goods and services or foreign goods and services with 
national treatment; to the bid submitted by a Colombian MSME, if the tie is not broken208, to the 
                                                
203 Article 5 of Law No 1.150 of 2007.  
204 The points system does not apply in cases of: (i) direct selection; (ii) abridged selection for the 
purchase of goods and services with uniform technical characteristics; and (iii) the minimum amount selection 
procedure.  
205 CCE, Manual para el manejo de los Acuerdos Comerciales en Procesos de Contratación . Viewed at: 
https://www.colombiacompra.gov.co/sites/cce_public/fi les/cce_documents/manual_acuerdos_comercialesr.pdf . 
206 Paragraph of Article 1 of Law No.  816 of 2003, as amended by Article 51 of Decree No.  19 of 2012.  
207 Law No.  816 of 2003, Law No.  590 of 2000 (MSMEs) and Law No.  361 of 1997 (Labour).  
208 Preference cannot be given to a Colombian MSME under a trade agreement.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  bidder whose payroll includes at least 10 % of persons with disabilities, if the  tie persists209, or lastly, 
using a random method envisaged in the tendering documents.210 
3.291.   There is also the possibility for State entities to restrict the invitation to participate in the 
procurement procedure, whether open tendering, abridged selection or m erit-based competition, to 
local MSMEs only, when the value of the procurement is less than US$125,000 (according to the 
exchange rate set by the MinCIT every two years), or when at least three Colombian MSMEs have 
requested the State entity to restrict th e tendering to domestic MSMEs for at least one working day 
before the process begins. State entities may also organize bidding restricted to local MSMEs that 
are domiciled in the departments or municipalities where the contracts will be executed. No data a re 
available regarding the degree of effective utilization of these preferences.  
3.3.6.3.1   Procurement control  
3.292.   Procurement decisions by State entities may be challenged in various ways, depending on 
the type of decision and the contracting phase (Table 3.34). The decision to award a contract may 
not be the subject of an appeal for administrative review and, save for the exceptions mentioned in 
Table 3.34, is irrevocable. However, the decision may be contested through the courts. Indeed, once 
the administrative deci sion is final, any person that proves a legitimate interest may file an action 
before the competent court (administrative courts) for annulment, or annulment with restoration of 
rights, or may bring a contract dispute action.  
Table 3.34 Control mechanisms for procurement procedures  
Decision  Control  Period for filing  Regulatory 
framework  
Contract award decision  Request for immediate 
revocation on account of 
disqualification, incompatibility 
or award obtained by  unlawful 
means  From the notification of the 
decision but prior to the 
signing of the contract  Article 9 of Law 
No. 1150 of 2007  
Contract award and other 
decisions issued during the 
contracting phase  Judicial 
action  Annulment  At any time  Article 137 of  Law 
No. 1437 of 2011  
Annulment and 
restoration of 
rights  4 months following 
notification of the decision  Article 138 of Law 
No. 1437 of 2011  
Contract dispute 
action  Two years after learning of 
the factual or legal grounds  Article 141 of Law 
No. 1437 of 2011  
Issued during the contracting 
phase.  
Such as: interpretation, 
amendment or unilateral 
termination  Application for reconsideration  5 days after notification  Articles 14 and 61 of 
Law No.  80 of 1993 
Source: Information provided by the authorities.  
3.293.   The management of government procurement and the fight against corruption is controlled 
through various bodies. The Office of the Public Prosecutor exercises disciplinary control over 
purchasing officers who break the law. The Office of the Co mptroller General of the Republic oversees 
the use of fiscal resources by State entities and may impose fines on officials who engage in corrupt 
practices. The Office of the Public Prosecutor investigates practices relating to criminal activities, 
includin g corruption and collusion in government procurement procedures on the part of civil 
servants and private sector agents, and its investigations can lead to terms of imprisonment. The 
Transparency Secretariat may sue civil servants and private sector agents  for alleged corruption, 
but may not issue rulings or impose sanctions. The SIC oversees the markets in which government 
procurement takes place in order to prevent anti -competitive practices in procurement procedures 
and may initiate investigations ex off icio or at the request of third  parties.211 According to SIC data, 
35 government procurement -related cases were investigated between 2012 and 2017.  
                                                
209 Persons with a disability must be certified by the Ministry of Labour. Branches of foreign companies 
in Colombia that fulfil the requirement may also benefit from this preference.  
210 Decree No.  1.082 of 2015, Article 2.2.1.1.2.2.9 ("tie -breakers").  
211 OECD, Latin American Competition Forum, Improving Effective Public Procurement: Fighting 
Collusion and Corruption. Contribution by Colombia , 18-19 September, Santo Domingo. 
DAF/COMP/LACF( 2012)9.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.294.   Law No.  1.474 of 2011 provides for fines, terms of imprisonment and eight -year 
disqualification from contracti ng with State entities for persons engaging in practices of collusion in 
open tendering procedures, public auctions, abridged selection procedures or merit -based 
competitions. Disqualification from contracting with the State is for life in the case of natu ral persons 
who have been found guilty by the courts of offences against the public administration or patrimony 
of the State or of international bribery, among other things.212 
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.295.   During the review period, Colombia pursued a proactive policy for strengthening its 
intellectual property regime and adapting it to technological developments and new business 
practices, as well as to the commitments it has entered into under trade agreements. The changes 
focused primarily on: adju sting the rules; optimizing the administration of intellectual property rights 
(IPR); facilitating and streamlining registration procedures; consolidating interinstitutional 
coordination; and strengthening enforcement. As a result, Colombia's intellectual property legal 
system is today quite comprehensive and in some areas goes well beyond the TRIPS disciplines. 
Despite the progress made, challenges remain, such as creating greater awareness and use of 
intellectual property rights in the country, beefing up  the fight against counterfeiting and piracy 
(including in the digital sphere) and building institutional capacity and cooperation in order to 
improve enforcement. Some Colombian policies on pharmaceutical products have also been called 
into question.  
3.296.   Colombia encourages the use of intellectual property as an instrument for generating value, 
economic growth and job creation, as well as for exploiting export market access by differentiating 
Colombian products. Thus, Law No.  1.834 of 2017 ("Ley Naranja", or O range Law) was designed to 
support creators in publishing and marketing their works, while Law No.  1.676 of 2013 (Law on 
Secured Transactions) opened a new avenue for the use of intellectual property rights as a credit 
guarantee.  
3.297.   Colombia is currently part y to 13 instruments administered by the World Intellectual 
Property Organization (WIPO), three of which it joined during the review period, namely: the Protocol 
Relating to the Madrid Agreement Concerning the International Registration of Marks; the 
Conven tion Relating to the Distribution of Program -Carrying Signals Transmitted by Satellite; and 
the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the 
Purposes of Patent Procedure (Table 3.35).  
Table 3.35 Participation in treaties administered by WIPO, 2017  
Convention/treaty  Date of accession  
WIPO Convention  4 February  1980 (Law No.  46 of 1979)  
Rome Convention for the Protection of Performers, Producers of 
Phonograms and Broadcasting Organizations  17 June 1976 (Law No.  48 of 1975)  
Berne Convention for the Protection of Literary and Artistic Works 
(Colombia is party to the Paris Act)  4 December  1987 (Law No.  33 of 1987)  
Geneva Convention for the Protection of Producers of  Phonograms 
against Unauthorized Duplication of their Phonograms  14 February  1994 (Law No.  23 of 1992)  
Paris Convention for the Protection of Industrial Property 
(Colombia  is party to the Stockholm Act)  3 June 1996 (Law No.  178 of 1994)  
International Convention for the Protection of New Varieties of 
Plants (UPOV)  13 August  1996 (Law No.  243 of 1995)  
Patent Cooperation Treaty  29 November  2000 (Law No.  463 of 1998)  
WIPO Copyright Treaty  29 November  2002 (Law No.  565 of 2000)  
WIPO Performances and Phonograms Treaty  29 November  2002 (Law No.  545 of 1999)  
Treaty on the Law of Trademarks and its Regulation  31 July 2009 (Law No.  1.343 of 2009)  
                                                
212 Article 1 of Decree No.  1.474 of 2011, and Constitutional Court Ruling No.  C-630/12 of 2012.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Convention/treaty  Date of accession  
Protocol Relating to the Madrid Agreement Concerning the 
International Registration of Marks  29 May 2012 (Law No.  1.455 of 2011)  
Brussels Convention relating to the Distribution of 
Program -Carrying Signals Transmitted by Satellite  20 December  2013 (Law No.  1.519 of 2012)  
Budapest Treaty on the International Recognition of the Deposit of 
Microorganisms for t he Purposes of Patent Procedure  26 April 2016 (Law No.  1.515 of 2012)  
Source:  WTO Secretariat, on the basis of information from the Colombian authorities.  
3.298.   As a member of the Andean Community, Colombia directly applies the Decisions on 
intellectual property adopted by the Commission of the Cartagena Agreement. These Decisions deal 
with the following topics: copyright and related rights; industrial property; access to genetic 
resources; and protection of new plant varieties. 213 The main laws and  decrees  regulating these  
matters at the domestic level are described in the following subsections that deal with each type of 
intellectual property right, including the regulatory changes that have taken place during the review 
period. In addition, Table 3.38 pro vides an overview of the various intellectual property rights, 
including their scope, term of protection and exceptions.  
3.299.   Owing to its general scope, mention should be made here of the Law on Secured Transactions 
(Law No.  1.676 of 2013), which, among other changes, made it possible for economic rights vested 
in intellectual property to be used as security.214 Supervisory Authority for Industry and Trade (SIC) 
Resolution No.  103.590 of 2015 regulates the procedure for registering security interests over 
industr ial property rights. At August  2017, 277 such securities had been registered and 100 more 
were being processed. These figures show an emerging market in secured transactions that provides 
new financing options.215 
3.300.   The institutions responsible for implementin g the intellectual property regime have joined 
efforts to strengthen the sector. The Intersectoral Commission on Intellectual Property (CIPI), 
created by Decree No.  1.162  of 2010, is responsible for coordinating and directing the 
National  Intellectual Prop erty Administrative System, which consists of a set of policies, rules, 
programmes and institutions, both public and private, related with intellectual property. The CIPI is 
composed of 12 State entities with responsibilities relating to intellectual prope rty, and is chaired by 
the Minister of Trade, Industry and Tourism. It meets at least once a year, and has six  technical 
subcommissions.216 
3.301.   The National Copyright Directorate (DNDA) is a special administrative unit of the Ministry  of 
the Interior. It is resp onsible for designing, administering and implementing government policies on 
copyright and related rights, and administering the national register of literary and artistic works 
and acts or contracts linked with copyright and related rights. It is also res ponsible for inspecting 
and monitoring the collecting societies. Its powers include making recommendations on accession 
to international treaties in this field and seeing to their ratification and implementation, and 
establishing the necessary measures for  compliance; it also provides training in and raises 
awareness of copyright and related rights.217 
3.302.   The SIC administers the National Industrial Property System. The Industrial Property Office 
consists of: (i) the New Creations Directorate, responsible for han dling applications for patents and 
utility models and registering industrial designs and layout -designs of integrated circuits; and (ii)  the 
Distinctive Signs Directorate, which handles applications for trademarks and trade names, slogans 
                                                
213 The CAN common regime on copyright and related rights was adopted by Decision No.  351 of 1993; 
the common regime on industrial property was established  by means of Decision No.  486 of 2000, as amended 
by Decision No.  689; the common regime on access to genetic resources was established by Decision No.  391 
of 1996; and the common regime on the protection of the rights of breeders of new plant varieties wa s 
established by Decision No.  345 of 1993. Viewed at: 
http://www.comunidadandina.org/Seccion.aspx?id=83&tipo=TE&title=propiedad -intelectual . 
214 Article 6  of Law No.  1.676 of 2013. V iewed at: 
http://www.secretariasenado.gov.co/senado/basedoc/ley_1676_2013.html . 
215 Information provided by the SIC.  
216 The subcommissions are: Copy right, Industrial Property, Plant Varieties, Genetic Resources and 
Traditional Knowledge, Education and Enforcement.  
217 The DNDA was established by Decree No.  2.014 of 1991.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  and logos, as wel l as appellations of origin. The Patents Bank promotes the use of new creations and 
patent documents as a source of technological information.218 
3.303.   The Colombian Agricultural Institute (ICA) is the national authority responsible for applying 
the plant variety protection regime, and for granting breeder's certificates and administering the 
National Register of Protected Plant Varieties. The ICA is also responsible for protecting undisclosed 
information concerning test data on chemical pesticides for agricultural  use.219 The National Food 
and Drug Surveillance Institute (INVIMA) protects undisclosed information concerning test data 
submitted to obtain the sanitary registration of pharmaceutical products containing new chemical 
entities, pursuant to Decree No.  2.085  of 2002.220 
3.304.   Table 3.36 provides a summary of IPR protection in Colombia.  
Table 3.36 Overview of intellectual property rights, 2017  
Coverage  Term of protection  Exceptions   
Copyright and related rights  
Literary  and artistic works  Lifetime + 80 years (natural person)  
50 years (legal person)  Legal provisions, judicial decisions, agreements 
and other regulations; right of quotation and 
reproduction for educational purposes  
Artistic performances, phonographic 
produ ctions and radio broadcasts  Lifetime + 80 years (natural person)  
50 years (legal person)  Private use, current affairs, use for teaching 
purposes, right to quote and make ephemeral 
recordings  
Patents  
Any invention, whether of products 
or of processes, i n all areas of 
technology, provided that it is new, 
involves an inventive step and is 
susceptible of industrial application  20 years from date of filing of the 
application  Discoveries; living organisms, biological 
processes or biological material as found in 
nature; literary, artistic works; plans, rules and 
methods; games; computer programs; ways of 
presenting information; inventions whose 
exploitation must be prevented to protect 
public order or morality; health or life of 
persons or animals or to p reserve plants or the 
environment; plants, animals; therapeutic or 
surgical methods; mathematical, financial or 
business methods, scientific theories  
Trademarks  
A trademark is any sign serving to 
distinguish products or services in 
the market. Signs that  are capable 
of graphic representation are eligible 
for registration as trademarks  10 years from being granted, 
renewable indefinitely for periods of 
10 years  Generic or technical name of the product or 
service; that could mislead commercial circles 
or the  public as to the nature, provenance, 
mode of manufacture or characteristics of the 
products in question; that consist of a 
geographical indication; that consist of the 
name of a protected plant variety; that are 
contrary to morality or public order or vio late 
third-party rights  
Appellations of origin  
Name of a country, region or specific 
locality, or name related with a 
specific geographical area, used to 
designate a product originating 
therein and whose quality, 
reputation or other characteristics 
are exclusively or essentially due to 
the geographical environment in 
which it is produced, including 
natural and human factors  Determined by the continued 
existence of the conditions that 
justified protection  Do not satisfy the definition; are a common or 
generic indication; are contrary to morality or 
public order; or could mislead the public as to 
the geographical provenance, nature, mode of 
manufacture, or the quality, reputation or other 
characteristics of the products in question  
Industrial design s  
Any particular new appearance of a 
product that results from any 
arrangement of lines or combination 
of colours, or any two -dimensional 
or three -dimensional outward shape, 
outline, form, texture or material, 
without the intended use or purpose 
of the said pr oduct being thereby 
changed.  10 years from date of filing of the 
application; non -renewable  Industrial designs whose commercial 
exploitation must be prevented in order to 
protect morality or public order; whose 
appearance was dictated entirely by technical  
considerations; and those that consist only of a 
form which is necessary in order to permit the 
mechanical assembly or connection of the 
product incorporating the design with another 
product of which it is a part  
                                                
218 Online information from the SIC, viewed at: http://www.sic.gov.co/delegatura -para-la-propiedad -
industrial . 
219 Online information from the ICA, viewed at: https://www.ica.gov.co/El -ICA/Funciones.aspx . 
220 Decree No.  2.085  of 2002. Viewed at: 
http://web.invima.gov.co/portal/documents/portal/documents/root//decreto_2085_2002.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  Coverage  Term of protection  Exceptions   
Plant varieties  
All cultivated varieties of botanical 
genera and species, provided that 
the growing, possession or use 
thereof is not prohibited for reasons 
of human, animal or plant health 
and that they are new, uniform, 
distinct and stable, and have been 
assigned a name that constitut es 
their generic designation  From the date when the plant 
breeder's right is granted, 25 years 
in the case of vines and forest and 
fruit trees; 20 years for all other 
species.  Plant varieties bred privately for 
non-commercial purposes; for experimental 
purposes; and, to obtain and exploit a new 
variety, unless it is one essentially derived from 
a protected variety. Whoever keeps and plants 
for his own use, or sells as raw material or 
food, the product obtained from the cultivation 
of the protected variety  
Protection of test data with exclusivity  
Pharmaceuticals: undisclosed 
information concerning the safety 
and effectiveness of an active 
ingredient which has not been 
included in pharmacological 
standards in Colombia and which 
has involved a considerable e ffort  5 years from approval for marketing  When: the holder has authorized the use of the 
information; it is similar to another that has 
been authorized in Colombia and the term of 
protection has expired; it is necessary to 
protect the public interest; the  new chemical 
entity has not been marketed in the country 
one year after the marketing permit was issued  
Agrochemicals: undisclosed 
information contained in the test 
reports on a new chemical entity, 
and which has involved a 
considerable effort  10 years f rom approval for marketing  When: the holder has authorized the use of the 
information; it is necessary to protect the 
public interest; the new chemical entity 
registered has not been marketed in the 
country one year after registration was granted  
Source:  WTO Secretariat, on the basis of information provided by Colombia and viewed on several internet 
sites belonging to the respective authorities, which are included in the citations at the bottom of 
the page.  
3.3.7.2   Copyright and related rights  
3.305.   Colombia's copyright  and related rights regime is governed at the CAN level by Decision 
No. 351 of 1993, and at the domestic level by Law No.  23 of 28  January  1982 and amendments 
thereto.221 Collecting societies in respect of copyright and related rights are regulated by Decree  
No. 3.942 of 2010.  
3.306.   A draft law currently before Congress regulates four matters: (1) rights of authors, 
performers, phonogram producers and broadcasting organizations, with an extension of the term of 
protection (from 50 to 70 years when the right holder is a legal person); (2) exceptions and 
limitations to these rights for educational, information and cultural purposes; (3) protection for 
technological measures and information on rights management; and (4) civil and criminal 
procedures. On 5  December  2017, the draft law was adopted in first debate (of the three required 
for adoption).  
3.307.   Under Article 2 of Law No.  23 of 1982, copyright protects scientific, literary and artistic works 
(including books, speeches, lectures and cinematographic works). Copyright p rotects works 
regardless of the means by which they are disseminated, including digital media. The right of 
reproduction, regulated by Decision 351 of 1993 (Articles 13 and 37), also covers acts performed in 
the digital environment. Accordingly, reproducti on through digital media of a work or performance 
protected by a related right requires the prior and express authorization of the right holder; this also 
applies to the public communication of a work on the internet (Articles 13 and 15 of Decision  351 of 
1993).  
3.308.   The term of protection for literary and artistic works is the author's lifetime plus 80 years for 
natural persons; and 50 years for legal persons as from the making, dissemination or publication of 
the work. Likewise, related rights are protected du ring the author's lifetime plus 80  years for natural 
persons; and for 50 years for legal persons. The law explicitly specifies the exceptions to copyright 
and related rights, seeking a balance between protection of the right holder and the public interest 
in access to information and education.  
3.309.   During the review period, some changes were made to the legal regime governing copyright. 
Law No.  1.450 of 16  June 2011 introduced amendments to Law No.  23 of 1982 (Articles  20 and 183) 
relating to the transfer of ec onomic rights. The Law on Public Performances (No.  1.493 of 2011) 
introduced provisions to strengthen the DNDA's powers of inspection, supervision and control of 
collecting societies.  
                                                
221 Law No.  44 of 1993 and Decree No.  2.150 of 1995.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.310.   Law No.  1.680 of 20  November  2013 introduced an exception to copyright i n order to allow 
access to protected works for the blind or visually impaired, through the reproduction, distribution, 
translation and conversion into Braille of such works without the right holder's permission, provided 
that such acts are not -for-profit a nd respect the author's moral rights. On 9  June 2017, Law 
No. 1.835 (the "Pepe Sánchez" Law) was adopted, recognizing the right of remuneration of authors 
of cinematographic works, including directors and scriptwriters, for the public communication of thei r 
audiovisual works.  
3.311.   Law No.  1.834 of 23  May 2017 ("Ley Naranja", or Orange Law) is aimed at encouraging the 
creative industries, i.e. industries that generate value through their goods and services based on 
intellectual property.222 At the same time, the DN DA created a website known as "Red Naranja" 
(or Orange Network), to enable Colombian creators to publish fragments of works that they had 
already registered with the DNDA and promote their marketing. According to DNDA data, in 2016 
there were 71,875 regist ered works, of which 52,799 were unpublished. In addition, the DNDA offers 
training courses to interested members of the public on the legal framework for copyright and related 
rights, and gave over 1,000 courses between 2012 and 2017.  
3.312.   Colombian legislation provides for both civil and criminal remedies against infringements of 
copyright and related rights. Right holders may apply to the civil courts under Law No.  23 of 1983, 
or institute proceedings for the offences defined in the Criminal Code (A rticles 270 to 272). 
Infringement of moral rights can lead to a term of imprisonment of between 32 and 90 months and 
fines of between 26.6 and 300 current statutory minimum monthly wage units (SMLMVs). In the 
case of economic rights, violations can lea d to a term of imprisonment of four  to eight years and 
fines of 26.6 to 1,000 SMLMV. These penalties also apply in the case of infringement of the copyright 
and related rights protection mechanisms, such as circumvention of the technological measures 
restricti ng unauthorized use and the removal of or tampering with information for the electronic 
management of rights, as well as the importation, distribution and communication of copies in which 
the information has been removed or altered.223 
3.313.   In addition, since 201 2 right holders and collecting societies have a space for airing and 
resolving disputes relating to the copyright and related rights regime through the 
"Fernando  Hinestrosa" Conciliation and Arbitration Centre, set up by Resolution No.  0271 of 
20 April 2012. According to information provided by the DNDA, the number of requests for 
conciliation submitted by users grew exponentially between 2012 and 2016 to reach a total of 976, 
of which almost a third were settled by mutual agreement.  
3.3.7.3   Industrial property  
3.314.   Colombia applies the CAN common industrial property regime, governed by Decisions 486 
of 2000 and 689  of 2008.224 Decision No.  486 contains substantive provisions on trademarks, 
appellations of origin, patents, industrial designs, layout -designs of integrated circuits, unfair 
competition and enforcement, and incorporates the national treatment and most -favoured -nation 
treatment principles of the TRIPS Agreement. It also establishes the regime of international 
exhaustion of industrial property rights.  Decision 689 permits the development and expansion of 
industrial property rights through the domestic legislation of the member countries of the 
Andean  Community. Accordingly, Colombia has issued laws and decrees regulating the 
CAN Decisions at the domest ic level with regard to the protection of specific industrial property 
rights. The SIC periodically issues resolutions and circulars updating administrative procedures.  
3.3.7.3.1   Patents  
3.315.   Under CAN Decision 486, protection is granted to patents, for both products and  processes, 
in all branches of technology, provided that they are new, involve an inventive step and are 
susceptible of industrial application. In Colombia, the patent regime is primarily regulated by Decree 
No. 2.591  of 2000 and by the SIC Single Circular  (2001), which is periodically updated.  
3.316.   The patent holder has the right to the exclusive and direct marketing of the patented 
product, or marketing through third parties under licence, or transferring the rights obtained by 
                                                
222 Law No.  1.834 of 2017. Viewed at: http://derechodeautor.gov.co/leyes . 
223 Article 272  of Law No.  599 of 24  July 2000 (Criminal Code ). 
224 Online information from the CAN, viewed at: http://www.comunidadandina.org/Seccion.aspx?id=83 . WT/TPR/S/372/Rev.1 • Colombia  
 
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  selling them to a third party th at exploits the invention.225 The term of protection for a patent is 
20 years from the date on which the application is filed. The following are not patentable: 
discoveries; living organisms, or whatever exists as found in nature; scientific theories; 
mathem atical methods; therapeutic and surgical methods; financial or business methods; the use 
of already existing products, whether or not patented; works of an artistic, literary or scientific 
nature; or computer programs as such.  
3.317.   The legislation provides for the grant of compulsory licences on the following grounds: 
(i) where the patent has not been worked (after three years from the grant of the patent or 
four years from the filing of the application, whichever is longer); (ii) public interest; (iii) abuse of  
dominant position; and (iv) dependent patents.226 Compulsory licences are subject to adequate 
remuneration and must be used predominantly for the supply of the domestic market.  
3.318.   The authorities have stated that in recent years there have been three requests for a 
declaration of public interest in order to obtain compulsory licences in the pharmaceutical sector; 
however, none had been granted at December  2017.227 One of these rulings concerned a 
cancer -treatment product patented by a transnational company.  
3.319.   In order to provide legal safety and certainty, and to address this concern, the Government 
modified the rules governing the procedure for the declaration of public interest (Decree No.  1.074 
of 26  May 2015228), through Decree No.  670 of 25  April 2017. The proced ure thus became more 
precise and systematic229, with the elimination of the link between the declaration of public interest 
and the control of medicine prices. Under the current procedure, the Ministry responsible for policy 
on the sector concerned may upon request declare that reasons of public interest exist. For that 
purpose, an Interinstitutional Technical Committee is set up, comprising the ministry concerned, the 
Ministry of Trade, Industry and Tourism ( MinCIT) and the National Planning Department (DNP) , 
which examines the situation and relevant information and makes a recommendation to the ministry 
concerned on the decision of whether or not to declare the existence of grounds of public interest. 
Interested third parties are given a ten -day period for s ubmitting comments. The ministry in question 
issues the declaration by means of a resolution in which it must identify the situation that affects 
the general interest and establish the circumstances that led to the decision and the reasons for 
which the co mpulsory licence should be granted. The SIC is tasked with establishing the aspects 
concerning the specific scope of the licence.  
3.320.   Other regulatory developments during the review period include Decree No.  729 of 
13 April 2012 regulating the description of t he invention, correction of omissions in the patent 
application, the "Bolar Exemption", and the recording of assignments and liens230; as well as Decree 
No. 1.873 of 29  September  2014 governing compensation for patent holders for unreasonable 
delays by the S IC in issuing patents, except in the case of pharmaceutical products.231 SIC Resolution 
No. 21.447 of 2012 simplified patent application procedures, allowing electronic transmission of 
documents and eliminating certain requirements such as legalization and a uthentication of the 
documents, which has speeded up the processing of applications: the average time for a decision 
has been cut from 52 months in 2012 to 20 months in 2017. Most patent applications are made 
through the Patent Cooperation Treaty (PCT); be tween 2012 and 2017, 79 % of applications were 
submitted through the PCT.  
                                                
225 Online information from the SIC, viewed at: http://w ww.sic.gov.co/es/web/guest/patentes . 
226 Articles 61 et seq . of Decision 486 of 2000 . 
227 Pursuant to Article 70  of Law No.  1.753 of 2015, the Ministry of Health may apply to the SIC for the 
grant of compulsory licences under the procedure for the granting of such licences.  
228 Decree No.  1.074 of 2015 (Chapter 24). Viewed at: 
https://www.ecolex.org/details /legislation/decreto -no-1074-decreto -unico -reglamentario -del-sector -comercio -
industria -y-turismo -lex-faoc150000 . 
229 Decree No.  670 of 2017. Viewed at: 
http://www.mincit.gov.co/loader.php?lServicio=Documentos&lFuncion=verPdf&id=80994&name=DECRETO_67
0_DEL_25_DE_ABRIL_DE_2017.pdf&prefijo=file . 
230 Decree No.  729 of 2012. Viewed at: 
http://www.mincit.gov.co/loader.php?lServicio=Documentos&lFuncion=verPdf&id=4498&name=decreto729_2
012.pdf . 
231 "Unreasonable delay" means more than five years from the filing of the application or three years 
after the request for the examination of the application was made, whichever is later. Decree No.  1.873 of 
2014. Viewed at: http://www.wip o.int/edocs/lexdocs/laws/es/co/co108es.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.321.   Since July  2017, Colombia has been part of the Patent Prosecution Highway (PCT -PPH), 
formed by 22 countries of Europe, North America, Asia, Oceania and South America. Applicants who 
submit their applications in at least two of these countries and obtain a favourable decision in any 
of them may request accelerated processing in the other countries and through a simple procedure 
involving a single set of requirements.232 This facilitates a nd speeds up patent applications, 
supporting Colombian inventors interested in patenting in the countries that belong to the PPH and 
vice versa.  
3.322.   Colombia accepted the Protocol Amending the TRIPS Agreement through Law No.  1.199 of 
2008 in August  2009. At en d 2017, Colombia had not yet enacted legislation for the domestic 
application of the Amended TRIPS Agreement.  
3.3.7.3.2   Trademarks  
3.323.   The trademark regime in Colombia is governed by Decree No.  2.591 of 2000 regulating 
CAN Decision 486. Under the latter, trademarks incl ude any sign capable of distinguishing products 
or services in the market. Colombia also accepts registration of collective marks and certification 
marks. The following may not be registered as marks: generic or technical names of products of 
services whic h could mislead trade circles or the public as to the nature, provenance, mode of 
manufacture or characteristics of the products concerned; consist of the name of a protected new 
plant variety; or are contrary to morality or public order or violate third -party rights. The SIC is the 
authority responsible for administering the trademark regime and keeping the register of trademarks 
and other distinctive signs (trade names, slogans and logos).  
3.324.   The term of protection for trademarks is ten years from the date o n which they are awarded, 
renewable for further periods of ten years. In 2012, Colombia acceded to the Madrid  Agreement 
Concerning the International Registration of Marks, under which trademark owners can receive 
protection for their trademark in several c ountries by filing a single application directly with the 
trademark office in their own country.  
3.325.   Decree No.  19 of 9  January  2012, aimed at eliminating unnecessary red tape in public 
administration, enables registration of a mark to distinguish products and /or services in different 
classes of the Nice International Classification through the filing of a single administrative 
application. Since then there have been no changes in the substant ive rules governing 
trademarks,  apart from some provisions on enforce ment relating to trademark rights 
(paragraph  3.338 below).  
3.3.7.3.3   Appellations of origin  
3.326.   In addition to CAN Decision 486, the appellation of origin regime is governed by Decree 
No. 3.081 of 2005 and Resolution No.  33.190 of 2007. SIC Resolution No.  57.530 of 2012  regulated 
the examination as to form, rights conferred, use by third parties, limits and exhaustion of the right.  
3.327.   An appellation of origin is considered to be the name of a country, region or specific locality, 
or a name which relates to a specific geogra phical area, used to designate a product originating 
therein and whose quality, reputation or other characteristics are exclusively or essentially 
attributable to the geographical environment in which it is produced, including natural and human 
factors. It  is not possible to register as appellations of origin designations that are, inter alia , 
common or generic indications, or are capable of misleading the public as to the geographical 
provenance, nature, mode of manufacture, or quality, reputation or other  characteristics of the 
products in question.  
3.328.   Applications for an appellation of origin to be declared protected may be filed by natural or 
legal persons directly engaged in the extraction, production or manufacture of the product or 
products it is sought to protect with the appellation of origin. However, where a collective right is 
concerned, the owner is the Colombian State represented by the SIC. Nevertheless, the SIC may 
delegate the power to authorize use of an appellation of origin to public or priva te entities that 
represent the persons engaged in the extraction, production or manufacture of the products 
                                                
232 Online information from the SIC, viewed at: http://www.sic.gov.co/procedimiento -acelerado -de-
patentes -global . WT/TPR/S/372/Rev.1 • Colombia  
 
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  identified with that appellation. Appellations of origin declared abroad are not protected in Colombia, 
and vice -versa.  
3.329.   The term of protection of an  appellation of origin is determined by the continued existence 
of the conditions that give the product its recognized qualities. Nevertheless, the SIC may at any 
time, ex officio or at the request of a party , cancel the authorization to use an appellation  of origin 
when: (i) it is shown that the conditions which justify the declaration of protection of the appellation 
have ceased to exist; and (ii) it is shown that the products covered by the appellation of origin 
regularly lack the guarantee or control of  compliance with its conditions.233 
3.330.   There are currently 27 protected appellations of origin in Colombia, including agri -food 
products (various kinds of coffee, cheese, flowers and rice) and crafts (ceramics, hats, woven 
fabrics). Some of Colombia's trade agr eements (with Mexico, EFTA and the United States) include 
disciplines on geographical indications. The agreement with the European Union also includes a list 
of geographical indications of the Parties which completed the internal protection procedure, 
including publication for opposition by third parties and the examination of the application by the 
competent authority.234 
3.3.7.3.4   Industrial designs  
3.331.   Decree No.  2.591  of 2000 establishes the legal framework for the protection of industrial 
designs; no changes were made  during the review period. An industrial design means any new 
special appearance of a product that results from some pattern of lines or combination of colours or 
some two -dimensional or three -dimensional external shape, contour, configuration, texture or 
material that does not change the intended use or purpose of the product. It is not possible to 
register industrial designs whose appearance is dictated entirely by considerations of a technical 
nature, or which consist solely of a shape necessary to enabl e the product that incorporates the 
design to be mechanically assembled or connected with another product of which it forms part, or 
whose exploitation would be contrary to morality or public order.  
3.332.   The term of protection runs for ten years, non -renewable,  from the filing date. The owner of 
the design may license or transfer the registration, prevent other persons using or copying the 
design, and take legal action against persons who have done so.235 
3.3.7.4   Protection of new plant varieties  
3.333.   CAN Decision 345  of 1993 establishes the common regime for the protection of the rights of 
breeders of plant varieties "that are new, uniform, distinct and stable, and have been assigned a 
name that constitutes their generic designation". In Colombia this protection is regulated b y Decree 
No. 533 of 1994, as amended by Decree No.  2.468  of 1994, Decree No.  2.687  of 2002 and Law 
No. 1.032 of 2006.236 During the review period, no changes were made to the regime of rights for 
breeders of new plant varieties. At the international level, C olombia is party to the UPOV  Convention 
(1978 Act) and is currently carrying out the procedures for accession to the 1991 Act.  
3.334.   The ICA is the authority responsible for granting breeder's certificates and keeping the 
National Register of Protected Plant Var ieties.237 The term of the breeder's certificate is 25 years for 
varieties of grape vines, forest trees and fruit trees (including their rootstocks) and 20 years for 
other species, reckoned from the date on which the certificate was granted. The protection r egime 
allows the "farmer's privilege", except for varieties of fruit, ornamental and forest species. Protection 
is territorial, so that the interested party will have to obtain a breeder's certificate in Colombia 
regardless of whether the variety concerned  has already been registered in another country.  
                                                
233 Online informatio n from the SIC, viewed at: http://www.sic.gov.co/denominacion -de-origen . 
234 Online information provided by Colombia, viewed at: http://www.colombia.co/negocia -con-
colombia/exportacion/productos -colombianos -con-denominacion -de-origen . 
235 Online information from the SIC, viewed at: http://www.sic.gov.co/disenos -industriales . 
236 These instruments may be viewed on the WIPO website at: 
http://www.wipo.int/wipolex/es/results.jsp?countries=CO&cat_id=10 . 
237 The Register and the procedure for obtaining a breeder's certificate were established by ICA 
Resolution No.  1.893 of 1995. Viewed at: https://www.ica.gov.co/getattachment/09c2ee75 -5cb6-49ba-afd2-
e27bdc1dd930/1995R1893.aspx . WT/TPR/S/372/Rev.1 • Colombia  
 
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  3.335.   According to ICA data, between 2012 and 2017 the applications for breeder's certificates 
received originated in: the Netherlands (57 %); Colombia (10 %); Germany (7 %); 
United  States  (5%); United Kingdom (5 %); Spain (4 %); Israel (3 %); Australia (2 %); Italy (2 %); 
Ecuador (1 %); France (1 %); New Zealand (1 %); and Japan (1 %). Of these requests, 80.7 % were 
for varieties of ornamental plants; 6.7 % for fruit species; 3.1 % for coffee; 2 % for rice; and the rest 
for other species. With respect to the Colombian applications, of the 73 received, 34.6 % were for 
varieties of coffee, 17.9 % for varieties of rice, 7.7 % for varieties of soya bean, 6.4 % for varieties of 
sugar cane, and the rest for other species.  
3.3.7.5   Undisclosed information  
3.336.   In Colombia, the protection of test data with exclusivity is governed by Decree 
No. 2.085  of 2002 in the case of medicines and by Decree No.  502 of 2003 in the case of chemical 
pesticides for use in agriculture. The I NVIMA is the authority responsible for the protection of 
test data concerning medicines and the ICA for test data relating to chemical pesticides.  
3.337.   In the period under review, Colombia issued Decree No.  733 of 2012 establishing the 
obligation to publish on the INVIMA website general information on requests for pharmacological 
assessment and sanitary registration submitted to the INVIMA.238 The term of protection is five  years 
from the date on which marketing is approved in the case of test data for pharmaceuti cal products. 
Decree No.  727 of 2012 increased the term of protection for test data relating to chemical pesticides 
for use in agriculture from five to ten years from the date of registration and clarified the scope of 
Decree No.  502 of 2003 (Article  5).239 
3.3.7.6   Enforcement  
3.338.   During the review period, Colombia stepped up its efforts to strengthen enforcement of IPRs. 
Most of the changes to the enforcement regime are aimed at the implementation of commitments 
entered into under the country's trade agreements. Despite  the progress made, challenges remain, 
such as the strengthening of interinstitutional coordination, the lack of resources, and the need to 
increase training for judges and the competent authorities in IPR  enforcement. Other challenges 
relate to the preval ence of counterfeiting and piracy, including digital piracy.  
3.339.   An important measure boosting enforcement was the enactment of Law No.  1.564 of 
12 July 2012 establishing the General Code of Procedure, which granted jurisdictional powers to the 
SIC, DNDA and I CA in recognition of their specialization for dealing with IPR -related cases.240 These 
authorities may therefore handle first -instance civil proceedings relating to IPR  infringements in the 
ordinary courts.  
3.340.   Tables 3.37 and 3.38 show the trend in proceedings before the SIC and the DNDA (the ICA 
has not yet made use of these powers). In both cases there has been an increase in the applications 
lodged, which may be explained by the gradual strengthening of the institutions'  capacity to use 
their jurisdictional p owers and the growing acceptance of those powers by users. In the realm of 
industrial property, the SIC authorities have indicated that most of the proceedings concern 
distinctive signs. In the case of copyright, the DNDA authorities have indicated that ap plications for 
the taking of extra -procedural evidence have predominated (63 % of cases), followed by the hearing 
of actual claims (34 %) and applications for extra -procedural precautionary measures (2 %). 
Table 3.37 Applications for legal proceedings before the SIC and outcomes, 2012 -2016  
Year  Applications  Conclusion  
Ruling  Conciliation  Withdrawal  Settlement  Rejection  Shelved  Other  
2012  142 102 8 4 8 47 1 26 
2013  108 34 10 11 10 18 0 25 
2014  276 48 18 23 10 105 8 64 
                                                
238 Online information, viewed at: https://www.invima.gov.co/tramites -y-servicios/2015 -11-30-21-21-
30/consultas -registros -y-documentos -asociados/213 -tramites -y-servicios/consultas -registros -y-documentos -
asociado s/3001 -informacion -decreto -transparencia -solicitudes -de-registros -sanitarios -nuevos -renovaciones -y-
evaluaciones -farmacologicas -medicamentos.html . 
239 Decree No.  727 of 2012. Viewed at: 
http://www.icbf.gov.co/cargues/avance/docs/decreto_0727_2012.htm . 
240 Article 24  of Law No.  1.564 of 2012 . Viewed at: 
http://www.secretariasenado.gov.co/senado/based oc/ley_1564_2012.html . WT/TPR/S/372/Rev.1 • Colombia  
 
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  Year  Applications  Conclusion  
Ruling  Conciliation  Withdrawal  Settlement  Rejection  Shelved  Other  
2015  363 38 36 92 7 192 46 0 
2016  555 57 15 57 16 209 141 0 
Source:  Information provided by the SIC.  
Table 3.38 Applications for legal proceedings before the DNDA and outcomes, 
2013 -2017  
Year  Applications  Completed  % of cases settled  
2013  17 16 94 
2014  8 12a 150 
2015  14 12 86 
2016  103 83 81 
2017  123 102 83 
a Includes cases brought in earlier years.  
Source:  Information provided by the DNDA.  
3.341.   Law No.  1.648 of 2013 establishing measures for the enforcement of industrial property 
rights provides for actions available to trademark right holders that may be enforced through judicial 
proceedings. Courts hearing trademark infringement cases are empowered to: (i) order the infringer 
to provide info rmation on the persons involved and on the means or instruments of production or 
distribution channels used; and (ii) order the destruction of materials and implements used to 
manufacture counterfeit goods. For these purposes, the competent authority may o rder 
precautionary measures. Holders whose rights have been infringed may opt for a  system of 
pre-established damages or by the general rules of evidence for damages.241 Pursuant to Decree 
No. 2.264 of 11  November  2014, a right holder who chooses the pre -established damages system 
does not have to prove the amount of the damages, and the compensation received will be 
equivalent to a minimum of 3 SMLMVs and a maximum of 100 SMLMVs, which may be raised up to 
200 SMLMVs in certain cases.242 
3.342.   In the framework of the  Intersectoral Commission on Intellectual Property, and on the basis 
of the National Development Plan 2014 –2018, a strategy to strengthen the intellectual property 
rights enforcement system was drafted and adopted in 2015. The strategy establishes the prio rity 
areas of work for enforcement, namely: institutional strengthening of the enforcement bodies; 
increasing society's awareness concerning observance and use of intellectual property rights; 
statistics; practices within the Government; alternative disput e settlement mechanisms 
(e.g. conciliation centres); and border measures.  
3.343.   The new Customs Statute (Decree No.  390 of 2016) empowers the National Tax and 
Customs Directorate (DIAN) to suspend the importation, exportation or transit of goods on grounds 
of infringement of copyright or trademark rights while the competent authority analyses and rules 
on the merits of the case. This is a major step for strengthening enforcement at the border.243 
3.344.   Law No.  1.801 of 29  July 2016 containing the National Police and Co existence Code gives 
the Police Authority powers of enforcement with respect to copyright. Thus, the police may ex officio 
request commercial establishments where protected musical works are performed for proof of 
payment of the corresponding royalties and  impose fines on establishments that cannot produce 
such proof.244 
3.345.   Law No.  1.826 of 12  January  2017 ("Small Claims Law") seeks to streamline judicial 
proceedings for a number of offences, including infringements of IPRs. The law provides for an 
accelerated c riminal procedure designed to speed up and reduce the time needed for the 
proceedings, and introduces the notion of private prosecution, whereby the prosecutor's office may 
relinquish its investigative powers to a private party to expedite the proceedings and conduct the 
investigation.245 
                                                
241 Article 3  of Law No.  1.648 of 2013 . Viewed at: 
http://www.sic.gov.co/sites/default/f iles/normatividad/LEY%2B1648%2BDEL%2B12%2BDE%2BJULIO%2BDE
%2B2013%2Bpropiedad%2Bindustrial.pdf . 
242 Decree No.  2.264 of 2014. Viewed at: http://extwprlegs1.fao.org/docs/pdf/col142208.pdf . 
243 Article 613  of Decree No.  390 of 2016.  
244 Articles 87 (paragraph 5) and 92  of Law No.  1.801 of 2016 . Viewed at: 
http://biblioteca.saludcapit al.gov.co/img_upload/03d591f205ab80e521292987c313699c/ley_1801_2016.pdf . 
245 Law No.  1.801 of 2016. Viewed at: 
http://es.presidencia.gov.co/no rmativa/normativa/LEY%201826%20DEL%2012%20DE%20ENERO%20DE%202017.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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 4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, forestry and fisheries  
4.1.1   General characteristics and policies of the sector  
4.1.  Agriculture is considered as a strategic sector, on account of its contribution to GDP and 
employment, and being an important source of foreign currency for Colombia. Its share in GDP 
increased in the period under review, rising from 5.8% in 2012 to 6.5% in 2016. The sector is, 
moreover, a key source of employment, providing jobs for 3.5  million p eople and absorbing 14.5% 
of the labour force in 2016. The rural unemployment rate in 2016 stood at 5.3%. Agriculture also 
contributes substantially to the generation of foreign exchange: agriculture exports represented 
21.8% of total exports in 2016 (Tabl e 4.1). The principal export products are coffee (8.0% of total 
exports in 2016), flowers (4.3%) and fruit (3.3%), especially bananas. Other significant products 
are sugar, palm oil and vegetables.  
Table 4.1 Main agricultural sector indicators, 2012 -2017  
 2012  2013  2014  2015  2016  2017a 
Contribution to current GDP (%)  5.8%  5.6%  5.7%  6.0%  6.5%  6.4%  
Real growth rate (%)  2.5%  6.5%  2.7%  2.5%  0.5%  6.3%  
Employment (% of total employment)  15.7%  15.2%  14.9%  14.6%  14.5%  14.5%  
Share of agricultural value added (%)        
Coffee products/production in tonnes  8.2%  10.6%  11.7%  13.2%  13.1%  12.6%  
Other agricultural products  45.7%  45.2%  44.8%  43.6%  43.6%  44.9%  
Live animals and animal products  40.2%  38.6%  37.7%  37.6%  37.8%  37.4%  
Forestry, logging and related activities   5.8%  5.6%  5.7%  5.6%  5.5%  5.1%  
Exports  56,618  59,644  58,821  54,890  36,018  31,757  
Agricultural products (US$  million)  6,644   6,688   7,350   6,944   6,860   6,815  
Agricultural products (% of exports)  11.1%  11.4%  13.4%  19.3%  21.6%  20.2%  
Agricultural products (rate of growth, %)  -6.23 0.7%  9.9%  -5.5%  -1.2%  -0.7%  
Most important products (% of exports)  77.4%  73.8%  78.2%  81.5%  81.0%  81.2%  
Coffee, not roasted, whether or not decaffeinated; 
coffee husks and skins, etc.  29.4%  28.7%  34.2%  37.1%  35.9%  34.9%  
Cut flowers and foliage  19.1%  20% 18.7%  18.7%  19.1%  19.2%  
Bananas (including plantains), fresh or dried  12.4%  11.4%  11.4%  11.6%  13.3%  12.7%  
Beet or cane sugar, not refined, in solid form  7.3%  4.9%  5.3%  5.0%  4.0%  5.1%  
Palm oil or fractions thereof  2.8%  2.7%  3.2%  3.9%  3.6 5.2%  
Food products, n.e.s.  5.2%  4.9%  4.1%  4.3%  4.3%  4.0%  
Fish, frozen (excluding fillets and minced fish)  1.2%  1.2%  1.3%  0.9%  0.8%  0.1%  
Imports  58,986  59,482  64,029  54,058  44,889  38,454  
Agricultural products (US$  millions)  6,326  6,202  6,318  5,862  6,157  5,145  
Agricultural products (% of total import)  10.7%  10.4%  9.9%  10.8%  13.7%  13.4%  
Agricultural products (rate of growth, %)  16.2%  -2% 1.9%  -7.2%  5.0%  -16.4%  
Agricultural trade balance (US$  million)  318 485 1.032  1.082  703 1,671  
a The data for 2017 are for the first three quarters of the year  
Source:  National Tax and Customs Directorate (DIAN) - National Administrative Department of Statistics 
(DANE).  
4.2.  In 2016, agricultural production climbed to 29  million tonnes, up 6% on 2015. Of this, 68% is 
from permanent crops and 32% from seasonal crops. The short -cycle crops that registered the 
highest growth in production were rice (26%), modified maize (19%) and traditional maize (14 %). 
Animal production is estimated at 4.0  million tonnes, down 6% on the previous year, chiefly 
reflecting the decline in poultry and livestock production.1 
4.3.  The Ministry of Agriculture and Rural Development (MADR) is the body responsible for 
formulating, c oordinating and assessing agricultural, fisheries, forestry and rural social development 
policies. The aim of these policies is to promote competitive, equitable and sustainable development 
of agricultural, forestry, fisheries and rural development process es, based on decentralization, 
consultation and participation, that will improve the level and quality of life of the population. The 
                                                
1 MADR (2017), Memorias al Congreso de la República, 2016 -2017. Viewed at:  
https://www.minagricultura.gov.co/planeacion -control -
gestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE%20LA%20REPUBL ICA/Memorias_al_Congreso_de_la
_Republica_%202016_2017.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  policies elaborated by the MADR are aligned with macroeconomic policy. Agricultural health and food 
safety policy falls un der the responsibility of the Colombian Agricultural Institute (ICA).  
4.4.  Colombia boasts a relatively high degree of food sufficiency, an estimated 85% of internal 
demand for food being met by domestic production. Nonetheless, Colombia's agricultural export 
markets continue to be characterized by concentration, given that 68.3% of agricultural exports in 
2016 were made up of three products: coffee, flowers and bananas. The first two, in particular, 
accounted for 55% of total agricultural exports in 2016. The p rincipal import products are maize, 
wheat and soybean oilcake. In 2016, 68% of the volume of Colombia's foreign purchases in the 
sector came from the United States, the other countries of the Andean Community of Nations (CAN) 
and MERCOSOR.  
4.5.  The review period saw the implementation of the Colombia Siembra  ("Colombia Sows") plan, 
a programme which forms part of the MADR's agricultural policy and focuses means of harnessing 
the country's agricultural development potential. Its objectives are to:  boost agricultural supply in 
order to guarantee food security in the country; expand production area and yields and promote 
agricultural and agro -industry exports; stimulate the development of trade in agriculture in order to 
improve incomes for producers ; and strengthen technological development and services in the 
agricultural sector. The plan's general goals include, furthermore, establishing an agricultural zoning 
map, so as to optimize land use; implementing a rural extension and technical assistance 
programme; implementing an agricultural risk -management programme; improving access to 
credit; and setting up rural entrepreneurship schools.2 
4.6.  In terms of boosting agricultural supply, Colombia Siembra  sets annual targets for increasing 
the planted area fo r each crop, seeking to expand the area devoted to the production of, inter alia , 
modified maize and forestry products, rice, barley, rubber, soya, oil palm and cocoa. The authorities 
indicated that significant progress has been made towards achieving this  goal, with 194,363 and 
240,313 new hectares planted in 2015 and 2016, respectively. Crops covered by the Colombia 
Siembra  plan also benefit from more favourable terms in the loans granted to farmers under the 
different lines of credit available for the se ctor (see infra). 
4.7.  The main legislation in the agricultural sector has been consolidated in Decree No.  1.071 of 
26 May 2015 enacting the Single Regulatory Decree on administration of the agricultural, fisheries 
and rural development sector. Other important laws include: Law No.  1.731 of 2014, adopting 
financing measures for revival of the agricultural, fisheries, aquaculture, forestry and agro -industry 
sector; Law No.  139 of 1994, instituting the Forestry Incentive Certificate (CIF), along with other 
provisi ons; and Law No.  160 of 1994, creating the National System of Agrarian Reform and Rural 
Development for Small Farmers, along with other provisions. With respect to land, Decree No.  902 
of 2017 was issued, adopting measures to facilitate implementa tion of t he Comprehensive 
Rural Reform.  
4.8.  Colombia joined the OECD Committee for Agriculture in March  2015. It was given policy 
recommendations on a series of issues, for example: focus support for agriculture on long -term 
structural reform; improve the institutional  framework of agricultural policy; reinforce the 
agricultural innovation system; and encourage further integration into international agro -food 
markets. The authorities indicated that the policies under Colombia Siembra  have been tailored 
towards meeting t hose recommendations and that work is moreover under way on institutional 
reform of land agencies and rural development bodies. To this end, in 2015 Colombia split the duties 
of the now defunct Colombian Rural Development Institute (INCODER) among three  specialized 
entities: the National Land Agency (ANT), the Rural Development Agency (ADR) and the Regional 
Revitalization Agency (ART), which will together execute the rural development policies formulated 
by the MADR.  
4.9.  In April  2016, Colombia joined the OECD Fisheries Committee, in which it undertook to strive 
to strengthen management for sustainable development of fishing and aquaculture. The MADR is in 
the process of implementing the recommendations made by the OECD regarding the collection of 
statistical an d scientific information in the fisheries and aquaculture sector, showing progress in 
terms of coverage and use of the Colombian Fisheries Statistical System (SEPEC). It is also working 
on simplification of administrative procedures, education and qualific ation of fishermen and 
                                                
2 Information provided by the authorities, and online information from Colombia Siembra , viewed at: 
https://w ww.minagricultura.gov.co/Colombia -Siembra/Paginas/default.aspx . WT/TPR/S/372/Rev.1 • Colombia  
 
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 fish farmers and strengthening monitoring and surveillance. This will all be helped by the approval 
of the draft law on illegal fishing, which deters this type of activity with sanctions; and the 
formulation of a fishing and aquacult ure policy geared to improving competiveness, which the MADR 
intends to achieve through: reducing operating costs for fishing vessels; diversifying fishing; 
modernizing the fishing fleet; promoting the consumption of fish; improving productivity and 
compet itiveness in aquaculture; and diversifying and upgrading production systems.  
4.1.2   Border measures  
4.10.   The tariff levels applied to the agricultural sector (WTO definition) are higher than those 
applied to non -agricultural goods. In 2017, agricultural products (WTO definition, excluding the 
Andean Price Band System (SAFP) for agricultural products) bore an average tariff of 15.4% (14.5% 
in 2011), higher than the average tariff applied to non -agricultural goods, which stood at 5.8% 
(4.9% in 2011). On average, the high est tariff duties by WTO category were applied to milk, animals 
and meat, and products of animal origin, with tariffs of 98%, 80% and 70%, respectively. The 
average tariff applied to fruit and vegetables was 14.1%; to coffee and tea, 12.7%; to cereals and 
cereal preparations, 14.4%; to oil seeds, fats and oils and their products, 13.2%; to sugar and 
confectionery, 13.9%; and to beverages, spirits and tobacco, 14.2%. The maximum tariff was 98%, 
applied to 13 lines under HS heading 04.02 (milk and cream, conc entrated).  
4.11.   Colombia still applies the Andean Price Band System (SAFP) for agricultural products, 
instituted by Decision No.  371 of November  1994, with the aim of stabilizing import costs for a 
specific group of agricultural products characterized by highly  unstable international prices. 
Stabilization is achieved by applying additional duties or tariff reductions to the Common External 
Tariff (CET), depending on the behaviour of international prices, on the basis of floor and ceiling 
prices set annually. The  SAFP covers in principle a total of 181 products: 13 marker products and 
168 related products. The marker products are those whose international prices are used to calculate 
the bands, while related products are those related to the production chain or su bstitute products 
similar to the marker product.  
4.12.   The price band makes the tariff a variable factor that is automatically adjusted to counteract 
external fluctuations in international prices.3 The floor price is the average of historical c.i.f. prices 
minus  the adjustment factor for the standard deviation.4 The ceiling price is the floor price plus one 
standard deviation. The reference price is the fortnightly average of the price quotations observed 
on the international reference market. An additional duty is applied when the ceiling price is below 
the international reference market price, while a tariff reduction is applied when the floor price is 
above the international reference market price.5 If the international market price lies within the 
band, there is neither a tariff reduction nor additional duty: the common external tariff or fixed 
component of the SAFP applies. Additional duties are calculated for the marker product and then 
adjusted for the duties to be applied to related products when the tariff  to which the latter are 
subject is different from that applied to the marker product.6 
4.13.   In 2017, the SAFP was applied to 162 tariff lines (2.1% of the tariff universe and 15.4% of 
the lines classified as agricultural products under the WTO definition). The  products subject to the 
price band (marker products) are: rice, barley, yellow maize, white maize, yellow soya beans, wheat, 
unrefined soybean oil, unrefined palm oil, white sugar, raw sugar, whole milk, chicken cuts and 
pig meat. If the ad valorem  equiva lents of the average prices determined in the SAPF are included, 
the average tariff for agricultural products (WTO definition) goes up to 20.7%, with a range of 
                                                
3 Online informa tion from the Andean Community,  viewed at: 
http://www.comunidadandina.org/Seccion.aspx?id=152 . 
4 The historical price is calculated on the basis of 60 -month observations up to the past October, taking 
the price quotations observed on the exchange and converting them into c.i.f. prices in constant dollars by 
including the freight costs corresponding t o the marker product and a 0.5% insurance charge.  
5 To calculate the tariff reductions, in the case of marker products, when the international or reference 
price (RP) is higher than the ceiling price (CP), the following equation is used: 
Reduction  = (RP-CP) x (1+CET)/RP, where CET is the common external tariff. To calculate the additional duty 
(AD), when the RP is below the floor price (FP), the following equation is used: AD  = (FP-RP) x (1+CET)/RP.  
6 When there are differences between the CET for the marke r and the CET for the related product, the 
following equations are used to calculate the additional duty (AD) for the related product: (a) if the CET for the 
related product (CET[r]) is greater than the CET for the marker product (CET[m]), then AD[r] = whi chever is 
the greater of AD[m]  x CET[m]/CET[r] and AD[m] -(CET[r] -CET[m]); or (b) if CET[r] is lower than CET[m], 
then AD[r]  = whichever is the smaller of AD[m]  x CET[m]/CET[r] and AD[m] -(CET[r] -CET[m]).  WT/TPR/S/372/Rev.1 • Colombia  
 
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  between 0 % and 174.3%. In terms of groups of products, the highest average tariff is applied on  
dairy products (63.8%), followed by animals and products of animal origin (42.7%), sugar and 
confectionery (22.6%), oil seeds, fats and oils (22.6%), and cereals and cereal preparations 
(20.2%).  
4.14.   During the period under review, Colombia notified to the WTO  the total imports of products 
subject to tariff quotas during the period 2011 -2014. These included, inter alia : meat, dairy 
products, grains and cereals, soya beans, oils and fats, and cotton.7 Colombia also indicated that 
the bound tariff quotas were not  activated given that the bound intra -quota tariff was higher than 
the MFN tariff applied. The majority of products subject to tariff  quotas are also subject to the  SAFP.  
4.15.   Some non -tariff measures also apply to the import of agricultural products, for examp le a 
series of import requirements, including licensing, approval, import registration and plant and animal 
health permits. The most frequently used instruments are import licences and sanitary and 
phytosanitary certificates.  
4.16.   An OECD study carried out in 2 015 reveals that Colombia's agricultural Producer Support 
Estimate (PSE) averaged 19% in 2011 -2013. It stated that a major component of this support is the 
Market Price Support (MPS), accounting for 81% of the PSE and mainly generated by border 
measures (o n import).8 Another recent study shows that, looking at the period 2012 -2015, the 
majority of products in Colombia's agricultural sector that are subject to a high tariff in relation to 
the sector average also display a high level of coverage of non -tariff measures, one example 
being  cereals.9 
4.17.   Colombia has reserved the right to apply the special safeguard clause in the WTO  Agreement 
on Agriculture to 55 four -digit tariff headings, but has not yet used it.  
4.18.   Colombia also grants preferential quotas for imports  from countries with which it has signed 
free trade agreements. Thus, in 2017 Colombia granted preferential quotas in its agreements with 
Canada (38 eight -digit HS tariff headings), Republic of Korea (6), Costa Rica (2), the United States 
(64, subheadings included), Mexico (27) and the European Union (85, subheadings included) 
(Table  A4.1).  
4.1.3   Domestic support, subsidies and other support schemes  
4.19.   In November  2017, the Government of Colombia notified to the WTO that it did not apply any 
export subsidies or prov ide any food aid between 1  January and 31  December  2012, 2013, 2014 or 
2015.10 
4.20.   In 2016, Colombia notified to the WTO domestic support programmes for agriculture for 2011, 
2012 and 2013.11 In 2017, it submitted the corresponding notification for 2014 and 2015 .12 Most of 
the support notified is aimed at contributing to the development of the agricultural sector, 
stimulating and strengthening the management skills of agricultural sector entities, and facilitating 
the transfer of information and research results t o producers and consumers, as well as preventing 
and managing animal and plant diseases and supporting diagnostic centres and health laboratories. 
It also notified support for cotton growers.  
4.21.   Colombia makes use of price stabilization mechanisms in order to  deal with fluctuations in 
world prices for certain agricultural products. The Price Stabilization Funds (FEPs), created by Law 
No. 101 of 1993, are intended to guarantee producers' incomes, regulate domestic production, and 
prevent price speculation, in a ddition to promoting agricultural exports. The resources for these 
                                                
7 WTO document G/AG/N/COL/50 of 4  May 2016.  
8 OECD (2 015), Review of Agricultural Policies: Colombia 2015 . Viewed at: https://read.oecd -
ilibrary.org/agriculture -and-food/oec d-review -of-agricultural -policies -colombia -2015_9789264227644 -en. 
9 Fedesarrollo – Universidad EAFIT (2017), Política comercial agrícola: nivel, costos y efectos de la 
protección en Colombia , Bogotá, August  2017. Viewed at: 
http://www.repository.fedesarrollo.org.co/bitstream/handle/11445/3443/Repor_Agosto_2017_Perfetti_et_al.p
df?sequence=1 . 
10 WTO document G/AG/N/COL/55 of 22  November  2017.  
11 WTO document G/AG/N/COL/51 of 29  July 2016.  
12 WTO document G/AG/N/COL/54 of 9  November  2017.  WT/TPR/S/372/Rev.1 • Colombia  
 
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 funds come from parafiscal charges: these are charges levied on producers which remain outside 
the national budget and are reinvested by the private sector in programmes of benefit to the a ctivity 
from which they are sourced. In 2017, there were FEPs for cotton, sugar, cocoa, meat, milk and 
products  thereof ; and palm oil.13 Each FEP has a Steering Committee, composed of producers and 
officials from the National Government, which establishes t he methodology for calculating a 
reference price based on the most representative international market quotation for each product. 
Producers and/or exporters make "transfers" to the respective FEP when the market price falls below 
the reference price, or r eceive compensation from the FEP when the price is above the reference 
price.  
4.22.   The coffee contribution is a parafiscal tax paid by the producer for each pound of coffee 
exported. The resulting resources are administered by the National Coffee Fund, a parafi scal account 
to which Colombian coffee growers contribute in order to manage "common coffee facilities", such 
as coffee research and expansion, and a purchase guarantee mechanism for coffee producers to 
ensure that they receive the best possible price for their crop. The Fund is administered by the 
Colombian Coffee Growers Federation (FNC), which is a private entity, and the authorities do not 
consider it as a domestic support mechanism as such. A total of Col$294,249  million was paid into 
the Fund in 2016.  The levy is 6 centavos of a Colombian peso per pound of coffee exported.  
4.23.   Coffee growers may take advantage of the Coffee Growers' Income Protection (PIC) scheme, 
which guarantees adequate remuneration for the producer, who signs a Price Protection Contrac t 
(CPP). Between October  2012 and December  2014, coffee growers were guaranteed a good price, 
under the PIC, that would cover the producer's production cost. The PIC applied whenever the 
reference price published by the FNC at the date of the sale was not above Col$700,000 per load.14 
This support operated until December  2014.  
4.24.   Pursuant to Article 7 of Law No.  101 of 1993, the Government may provide selective and 
temporary incentives or support to producers, for agricultural production, protecting rural income 
and maintaining peace. In this context, the Guaranteed Minimum Price  (PMG) scheme for cotton 
protects Colombian farmers' incomes from fluctuations in international prices by offering 
compensation for the price differential between market prices (New York Exchange) and a minimum 
guaranteed price per tonne of lint. In 2016, th e MADR allocated Col$8,920  million of resources to 
protect growers' incomes by granting indemnities to cotton farmers in respect of the two harvests 
in 2016, for a total of 12,968 tonnes of lint marketed. The PMG policy agreed with the Government 
expired i n 2017 and the scheme ceased to operate. Through the Rice Storage Incentive  scheme, the 
Government seeks to prevent a fall in producer prices due to the surpluses that normally occur in 
the second half of each year. In the second half of 2016, an incentive  scheme was introduced for 
the storage of dried paddy or its equivalent in white rice. The total volume supported under this 
incentive came to 401,449 tonnes of dry paddy rice, for a fiscal cost of Col$30,786  million.15 Under 
the Specific Programme for Milk , the price of milk is regulated by means of a reference price, on 
which producers receive an increase or a reduction depending on the hygiene quality and the 
composition of the milk.16 
4.25.   By MADR Resolution No.  169 of 15  July 2016, a Price and exchange -rate c overage incentive 
programme for producers of modified maize  was put in place. The programme enabled producers to 
                                                
13 The FEP for cotton, which is managed by the Colombian Cotton Confederation (CONALGODON); the 
FEP for centrifugal sugars, molasses obtained by ex tracting or refining sugar, and sugar syrups, managed by 
the Colombian Sugar Cane Growers' Association (ASOCAÑA); the FEP for cocoa, managed by the National 
Federation of Cocoa Growers (FEDECACAO); the FEP for promoting the export of meat, milk and product s 
thereof , managed by the Colombian Cattle Breeders' Federation (FEDEGAN); and the FEP for palm kernel oil, 
palm oil and fractions thereof, managed by the National Federation of Palm Oil Producers (FEDEPALMA).  
14 The support was set at Col$145,000 per 125kg  load of dry, parchment coffee, or its equivalent in wet 
processed or cherry coffee. If the reference price fell below Col$480,000 per load, the PIC was increased by 
Col$20,000. Coffee growers who purchased insurance for their crops were entitled to a subs idy of 60% of the 
cost of the premium, as well as a lower interest rate on loans for the preservation and renovation of coffee 
plantations, under the "Coffee without Risk" special line of credit offered by the Agrarian Bank. Online 
information from the FNC , viewed at: https://www.federaciondecafeteros.org/static/files/Infobienes.pdf . 
15 MADR (2017), Memorias al Congreso de la República, 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacion -control -
gestion/Gestin/MEMORIAS%20AL%20CONGRE SO%20DE%20LA%20REPUBLICA/Memorias_al_Congreso_de_la
_Republica_%202016_2017.pdf . 
16 MADR, Resolutions No.  051 of 2003 and No.  012 of 2007. National Dai ry Council, Decision No.  007 
of 2002.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  protect themselves against a fall in international prices and exchange -rate variations, with the aim 
of fostering stability in production and e arnings. In 2016 -2017, the programme cost 
Col$3,243  million and covered a volume of 56,896 tonnes, with an average compensation of 
Col$65,000 per tonne for producers of yellow maize and Col$75,000 for white maize.  
4.26.   The prices of agricultural inputs, specifi cally fertilizers and pesticides for agricultural use, are 
subject to the "monitored freedom regime", under which prices may be freely determined throughout 
the distribution chain, although they must be communicated to the MADR. The MADR has the option 
to intervene in the inputs market and set maximum selling prices for inputs where justified by the 
state of the market. If the maximum selling price is not respected, the MADR may then place the 
product under the "direct price control regime", setting the pri ce at all levels of the marketing chain 
by means of a resolution until such time as it has been determined that the conditions that led to its 
intervention have ceased to exist.17 In 2013, a mechanism was put in place for gathering information 
from particip ants in the inputs market on sales, prices and costs of the major agricultural inputs and 
for closely tracking prices.  
4.27.   In order to promote forestry, the MADR grants the Forestry Incentive Certificate (CIF), created 
by Law No.  139 of 1994. Beneficiaries of the CIF receive a monetary contribution of up to 50% of 
the costs of sowing new plantations for commercial purposes on land suitable for forestry owned or 
rented by natural or legal persons. In addition, from the second to the fifth year after sowing they 
can claim up to 50% of upkeep costs. The tree species entitled to benefit from the CIF include pine, 
eucalyptus, acacia, teak, gmelina, walnut, oak, guadua, rubber and ceiba. In 2016, funds were 
granted under the CIF of around Col$17  billion for new projec ts and Col$8  billion for upkeep of 
existing projects.18 
4.28.   The MADR also implements modernization, development and innovation programmes to 
improve the competitiveness of fisheries and aquaculture at the national level. One of these is the 
Implementation of ne w technologies for aquaculture production  scheme. Under this programme, 
Col$7,345  million worth of investments were made in 2016. The Quality and traceability for 
aquaculture  scheme seeks to promote the application of Good Production Practices for Aquacult ure 
(BPPA), with a view to improving the quality and safety of aquaculture products. The programme is 
implemented under an agreement between the MADR and the Colombian Federation of Aquaculture 
Producers (FEDEACUA), with funding of Col$554  million. A Capac ity-building programme to help 
fisheries and aquaculture producers gain access to differentiated national and international markets  
is also being implemented, to which Col$2  billion was devoted in 2016, for the purchase and delivery 
of inputs, elements and  equipment as well as adequate infrastructure. Industrial fishing boats and 
aquaculture enjoy a fuel price subsidy.  
4.29.   The Rural Development with Equity (DRE) programme, which was in place between 2010 and 
2014, pursued the objective of supporting small and m edium -sized producers to make them more 
competitive and help lessen rural inequalities and strengthen national food security. The main 
components of the DRE programme were the Special Line of Credit (LEC); the Rural Capitalization 
Incentive (ICR); the Tech nical Assistance Incentive (IAT); rural micro -loans; and support for 
irrigation and drainage projects.  
4.30.   The Rural Development Agency (ADR) implements comprehensive agricultural and rural 
development plans and projects, focusing on local areas or association s. The services provided under 
these plans include technical assistance, financing for production projects, building common facilities 
(in particular infrastructure for irrigation and drainage) and marketing of agricultural products. The 
National Rural Lan d Formalization Programme, set up by MADR Resolution No.  452/2012 and 
amended by MADR Resolution No.  181/2013, aims to promote access to ownership of rural 
properties and improve the quality of life of farmers. In 2015, the programme was transferred to 
the ANT, which has been moving forward with its implementation since August  2016.  
4.31.   The Colombia Siembra  programme, introduced in 2015, seeks to enhance agricultural supply 
for domestic consumption while at the same time improving the competitiveness of products with 
                                                
17 Resolutions No.  387 of 22  December  2011, No.  389 of 26  December  2011 and No.  390 of 
26 December  2011, and Decree No.  625 of 2014.  
18 MADR (2017), Memorias al Congreso de la República, 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacioncontrolgestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE
%20LA%20REPUBLICA/Memorias_al_Congreso_de_la_Republica_%202016_2017.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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 export potential. Its aim is to succeed in leveraging Col$8 trillion of loans under the term s granted 
by the Fund for Financing the Agricultural Sector (FINAGRO), especially through the ICR and the 
resources under the LEC (see infra). The total amount of financing and credit incentives granted 
through these tools and within the framework of Colom bia Siembra  in 2017 came to 
Col$121,109  million, and Col$1.04 trillion worth of investments were leveraged, benefiting 30,539 
producers.  
4.1.4   Financing and insurance  
4.32.   The agricultural sector may also benefit from support through loans; some of these lending 
instruments, such as the LEC and the ICR, are part of the Colombia Siembra  plan. The National 
Agricultural Credit Commission, set up by Law No.  16 of 1990, is the lead entity of the National 
Agricultural Credit System. Colombia Siembra , being an MADR policy do cument, guides financing 
policy, while instruments such as the ICR and the LEC support its implementation.  
4.1.4.1   Special Line of Credit (LEC)  
4.33.   The Special Line of Credit (LEC) is an instrument designed to improve the financing conditions 
for agricultural projects  involving the planting and upkeep of short -cycle crops that are part of the 
basic food basket or are of export interest.19 Resources from the National Budget assigned to the 
LEC are channelled through FINAGRO to support interest -rate reductions for produce rs; the subsidy 
is given by FINAGRO and varies according to the size of the producer (Table 4.2).  
Table 4.2 Special Line of Credit, conditions for different users  
Category of producer  LEC interest rate  
(Colombia Siembra  envelope)  Regular interest rate  
Small producera DTFd Fixed -term deposit (DTF) rate +1%  
Medium -sized producerb DTF +  1% DTF +  2% 
Large producerc DTF + 2%  Not applicable  
Association  DTF DTF +  1% 
Activities/products  Yellow maize, soya beans, passiflora spp. 
(granadilla, yellow and purple passion 
fruit), banana, Cape gooseberries, 
pineapple, rice, barley, retention of 
breeding bovine and bubaline animals  Other short - and medium -cycle crops 
(tubers, vegetables, fruit, pulses, and 
others)  
a Producers with total assets of up to the equivalent of 145 current statutory minimum monthly wage 
units (SMMLVs). At least 75% of these total assets must be invested in the agricultural sector, or 
two thirds of the producer's income must stem from the a gricultural sector.  
b Producers with total assets of more than 145 SMMLVs and up to 5,000 SMMLVs.  
c Producers with assets in excess of 5,000 SMMLV.  
d Average deposit -taking interest rate in Colombia for fixed -term deposits, which is used as the 
reference r ate. Calculated weekly by the Central Bank.  
Source:  FINAGRO.  
4.34.   The Colombia Siembra  LEC offers loans at preferential rates, in order to boost domestic supply 
and promote exports. The crops given priority by the programme are: modified yellow maize , soya 
beans, passiflora spp. (granadilla, yellow and purple passion fruit), bananas, Cape gooseberries, 
pineapple, rice and barley, as well as financing the retention of breeding bovine and bubaline 
animals, aquaculture and shrimp. All categories of producer (large,  medium -sized or small) have 
access to these loans; however, no more than 20% of the interest rate subsidy budget may go to 
large producers. In 2017, Col$30,836  million were assigned to the Colombia Siembra  LEC, of which 
Col$22,822  million were disbursed. Of the total LEC resources disbursed in 2017, large producers 
received Col$5,516  million, i.e. 15.7%.  
4.35.   The General LEC is a special line of credit for subsidized loans, which consists in granting a 
subsidy on the interest rate on loans taken out with financ ial intermediaries that can rediscount 
transactions with FINAGRO. Its purpose is to enable producers to obtain lower interest rates than 
those offered on the market under normal conditions. The Gen eral LEC is subdivided into 
                                                
19 For example, achira, sesame, cotton, irrigated rice, rainfed rice, oats, barley, beans, short -cycle fruit, 
vegetables, maize, groundnuts, potatoes, plantains, sorghum, soya beans, dark tobacco, light tobacco, wheat 
and cassava.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  two headings or purposes: coffe e renovation by means of the "zoca" cutting process, and general. 
In 2017, Col$14,599  million were assigned for the General LEC, of which Col$13,591  million were 
earmarked for the General LEC as such, and Col$968  million for coffee renovation by means of t he 
zoca process. Of these resources, Col$12,198  million were used, of which Col$11,304  million were 
expended in the General LEC and Col$894  million for coffee renovation using the zoca process. The 
execution ratio of the overall credit line was 83.8% of th e total allocated resources.  
4.1.4.2   Rural Capitalization Incentive (ICR)  
4.36.   The Rural Capitalization Incentive (ICR) is an economic benefit granted by the Government 
with the aim of stimulating capital investment in rural areas and thereby improving the productivity  
and competiveness of agricultural producers. The amount of the incentive corresponds to a 
percentage of the total value of the investment, determined according to a classification by category 
of producer. The ICR is a payment towards the balance of the pr incipal of the loan taken out by the 
producer in order to carry out new investment projects intended to upgrade infrastructure for 
production, for agricultural and fisheries marketing, and to finance the sowing of medium -yield 
crops.20 Small producers (up t o 284 SMMLVs) can obtain up to 40% of the amount invested, as can 
an association in which small producers account for at least 50% of the project. Medium -sized 
producers (from 285 to 5,000 SMMLVs) can obtain up to 30% ( Colombia Siembra  segment) or 20% 
(General segment) of the amount invested. Producer associations, cooperatives and ventures in 
which a share of the capital is held by small producers can also receive the ICR, in the amount of a 
percentage determined according to the level of participation of this category of producer. The ICR 
is channelled, according to the category of producer, through a financial intermediary.  
4.37.   Support provided by the ICR in 2016 amounted to Col$246,683  million, which leveraged 
investments worth Col$1.1 trillion. This represe nts a 63% growth in the amount of the ICR paid out 
and 77% in the amount of investment made in relation to 2015.21 The budget assigned to the ICR 
in 2017 was Col$88,162  million, and Col$86,088  million (97.6%) was disbursed, leveraging 
investments of Col$448 ,624 million. The Colombia Siembra  ICR received Col$60,422  million and the 
General segment ICR Col$27,738  million.  
4.1.4.3   Fund for Financing the Agricultural Sector (FINAGRO)  
4.38.   The Fund for Financing the Agricultural Sector (FINAGRO), created by Law No.  16 of 1990,  is 
a national semi -public company, set up as a credit institution, linked to the MADR and overseen by 
the Colombian Financial Supervisory Authority (SFC). FINAGRO specializes in managing agricultural 
and rural loans, and finances the working capital and i nvestment required for production, marketing 
and primary processing, as well as loan restructuring.22 
4.39.   The FINAGRO acts as a second -tier institution. Production, marketing, processing and support 
services for agricultural, livestock, fisheries, fish -farming and forestry and rural activities can be 
financed through FINAGRO, for example: handicrafts, rural tourism, processing of precious metals 
and stones and mining. Loans can go to all producers that are natural or legal persons classified and 
defined by FINAG RO as small, medium -sized or large producers, low -income rural women or MSMEs. 
The interest and discount rates on the loans depend on the category of producer requesting the 
loan, in accordance with FINAGRO's classification (Table 4.3). The terms and grace  periods for 
FINAGRO loans depend on the production cycle of the activity to be financed. To be entitled to 
FINAGRO loans, 75% of the applicant's total assets must be invested in the agricultural sector, or 
two thirds of their income must stem from the sec tor. 
                                                
20 The ICR may only be used for the following activities: planting and upkeep of late -yield crops; 
preparing land and managing water resources; purchasing machinery and equipment for agricultural and 
aquaculture production; production infrastructure; primary  processing and marketing of goods; development of 
biotechnology and its incorporation into production processes; and silvopastoral production systems.  
21 MADR (2017), Memorias al Congreso de la República, 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacioncontrol gestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE
%20LA%2 0REPUBLICA/Memorias_al_Congreso_de_la_Republica_%202016_2017.pdf . 
22 Online information from FINAGRO,viewed at: https://www.finagro.com.co/qui%C3%A9nes -
somos/informaci%C3%B3n -institucional#1765 . WT/TPR/S/372/Rev.1 • Colombia  
 
- 127 - 
 
 
 4.40.   The financing provided through FINAGRO may reach up to 100% in all cases. However, 
pursuant to the National Agricultural Credit Commission's Resolution No.  1 of 2016, the maximum 
amount of the loan for small producers, rural youth and rural women is set at no more than 70% of 
the assets used as a basis for defining the category (284 SMMLVs, equivalent in 2018 to 
Col$781,242). For other loans, the limit is determined according to the project. FINAGRO credit lines 
bring the farmer a number of benefits, since they give access to a loan at a capped interest rate, 
which is lower for smaller or vulnerable producers. Furthermore, FINAGRO encourages financial 
intermediaries to grant loans to farmers. This incentive is based on the differential between the 
maximum interest rate for each category of producer and the rediscount rate granted by FINAGRO 
to the financial intermediary. This interest spread, or intermediation margin, varies between 7.5 and 
12 percentage points, depending on the category of producer (Ta ble 4.3).  
Table 4.3 FINAGRO lines of credit, conditions by category of user  
Programme  Coverage  Term  Category of 
producer  Rediscount 
rate Maximum 
ordinary interest 
rate 
Investment  Long-term 
investments: 
purchase of 
machinery and 
equipment, 
purchase of 
animals, 
infrastructure, 
late-yield crops, 
business 
capitalization, etc.  Term and grace 
period freely 
agreed according 
to the project's 
cash flow  Small producera DTF – 2.5%e DTF + 7%e 
Medium -sized 
producerb DTF +1%  DTF + 10%  
Large producerc DTF + 2%  DTF + 10%  
Associationf DTF – 3.5%  DTF + 5%  
Rural youth/Rural 
womend DTF – 2.5%  DTF + 5%  
Integrationg DTF - 1% DTF + 7%  
MSMEsh DTF + 2%  DTF + 10%  
Working 
capital  Short -term finance 
costs of a project 
(up to 24 months)  Up to 24 months. 
For a producer, 
single repayment 
in fine , including 
interest; for a 
market er, 
periodical, 
maximum every 
6 months  Small producera DTF – 2.5%  DTF + 7%e 
Medium -sized 
producerb DTF + 1%  DTF + 10%  
Large producerc DTF + 2%  DTF + 10%  
Associationf DTF – 3.5%  DTF + 5%  
Rural youth/Rural 
womend DTF – 2.5%  DTF + 5%  
Integrationg DTF - 1% DTF + 7%  
MSMEsh DTF + 2%  DTF + 10%  
Restructuring  Allows debt 
restructuring so as 
to be able to settle 
other outstanding 
loans  Term and grace 
period freely 
agreed  Small producera DTF – 2.5%  DTF + 7%e 
Medium -sized 
producerb DTF + 1%  DTF +10%  
Large producerc DTF + 2%  DTF + 10%  
Associationf DTF – 3.5%  DTF + 5%  
Rural youth/Rural 
womend DTF - 2.5%  DTF + 5%  
Integrationg DTF - 1% DTF + 7%  
MSMEsh DTF + 2%  DTF + 10%  
a With total assets of up to 284 SMMLVs.  
b With total assets between 285 and 5,000 SMMLVs.  
c With total assets in excess of 5,000 SMMLVs.  
d Rural youth: Natural persons between 18 and 28 years of age, with assets not exceeding 70% of 
284 SMMLVs. Rural women: Assets must not exceed 70% of 284 SMMLVs.  
e Average annual effective deposit -taking interest rate in Colombia for fixed -term deposits, which is 
used as the reference rate. Calculated weekly by the Central Bank.  
f Grouping together small producers, who must account for at least 50% of the area to be planted 
using the loan or 50% of the number of association members.  
g Assets according to category of producer. The borrower must be a legal person that provides 
technical assistance and handles marketing of the production of its members.  
h Applicable for rural activities, with total assets of up to Col$22,131,510,000.  
Source:  Resolution No.  1 of 2016 of the National Ag ricultural Credit Commission, and FINAGRO's portfolio of 
services.  
4.41.   FINAGRO also offers instruments such as Microcrédito Rural  (rural micro -loans) for activities 
entailing small amounts.23 Pursuant to Resolution No.  1 of 2016, any rural activities may be fin anced 
through the Microcrédito  credit line. This type of loan is open to any rural dweller, at an interest rate 
defined as the "maximum permitted": the rediscount rate equivalent to the fixed -term deposit (DTF) 
rate + 2.5%. With a view to fostering access to credit in the rural sector, Law No.  1.731 of 2014 set 
                                                
23 FINAGRO (2017), Portafolio de Servicios , August  2017. Viewed at: 
https://www.finagro.com.co/sites/default/files/p ortafolio_finagro_agosto_2017_2.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
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  up the Rural Micro -Finance Fund as a fund without legal personality, administered by FINAGRO and 
governed by Decree No.  1.449 of 2015.24 In accordance with National Economic and Social Policy 
Council (CONPES) Document No.  3.866 of 2016 (National Productive Development Policy), 
capitalization of the Rural Micro -Finance Fund is managed by the MADR, together with FINAGRO.25 
Using resources granted through eligible financial institutions, cooperatives and a ssociations 
operating in rural areas of Colombia, the Fund provides loans on favourable conditions to a segment 
of the population that has no access to financing through other channels. In 2016, the Fund placed 
a total of Col$6.5  billion in resources.  
4.42.   In 2016, placements made with FINAGRO resources came to Col$10.38 trillion, corresponding 
to 310,970 operations, benefiting 288,112 small, medium -sized and large agricultural producers. Of 
the total funds placed, Col$2.01 trillion, or 19.3% of the total, repre senting 234,235 operations, 
served to finance small producers' projects.26 Appropriations assigned to medium -sized and large 
producers' projects totalled Col$8.38  million in 2016, or 80.7%, representing 76,735 operations.27 
In 2017, placements made with FINA GRO resources came to Col$14.77 trillion, for 445,437 
operations, benefiting 8,172 large, 164,189 medium -sized and 273,076 small agricultural producers. 
Of the total funds placed, Col$2.34 trillion, or 15% of the total, representing 273,076 operations, 
served to finance small producers' projects. Placements for micro -loans in 2017 accounted for 
104,755 operations worth Col$196,145  million, benefiting 100,213 micro -enterprises. Looking at a 
breakdown of placements for small producers by credit line, 15.5% we re for working capital, 74.7% 
for investment and 9.8% for debt restructuring. The appropriations assigned to medium -sized and 
large producers' projects came to Col$12.42 trillion in 2017, or 84.1% of the total, representing 
172,361 operations, i.e. 38.7% o f the total number of operations. By line of credit, 49.9% of the 
appropriations were for working capital, 35.8% for investment and 14.3% for portfolio restructuring.  
4.43.   Within the total agricultural credit granted in 2017, FINAGRO allocated Col$2.07  trillion  to 
livestock farming and meat, Col$1.3 trillion to sugar cane, Col$1.6 6 trillion to rice, Col$1.13 trillion 
to poultry farming, Col$1.05 trillion to coffee and Col$134,321  million to the fisheries and 
aquaculture sector.  
4.1.4.4   Agricultural Guarantee Fund (FAG)  
4.44.   The purpose of the Agricultural Guarantee Fund (FAG) is to support loans and micro -loans 
granted under FINAGRO conditions and serving to finance projects in the agricultural and rural 
sector, including operations carried out through exchanges for commoditi es and agricultural and 
agro-industrial goods. The FAG underwrites obligations assumed vis-à-vis banking entities when a 
FINAGRO agricultural loan is requested without any other collateral, or if the latter is insufficient or 
unsuitable. For small enterpri ses, the FAG guarantee may cover up to 100% of the loan. For other 
producers, coverage ranges between 50% and 80% of the loan, depending on its purpose. In the 
case of associations, coverage can reach 80%, whereas the maximum coverage for integration 
projects is 70%, and 50% for micro -loans.28 
4.45.   In 2016, the FAG backed 240,441 loans worth Col$2.3 trillion, representing 23% of total 
disbursements for the sector under FINAGRO lines of credit. The value of FAG guarantees during 
that period came to Col$1.7 trillio n, or 75% of the loans guaranteed (Table 4.4). In 2017, the FAG 
backed 283,593 loans worth Col$2.77 trillion, representing 18.8% of total loan placements. The 
value of FAG guarantees during that period came to Col$2.1 trillion, or 75.9% of the loans 
guaran teed (Table 4.4). The Fund endorsed 63.66% of the operations recorded in 2017 and 18.8% 
                                                
24 MADR (2017), Memorias al Congreso de la República 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacion -control -
gestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE%20LA%20REPUBLICA/Memorias_al_Congreso_de_la
_Republica_%202016_2017.pdf . 
25 For the purposes of Law No.  1.731 of 2014, r ural micro -finance is understood to mean financial 
services, such as micro -loans, micro -insurance, micro -leasing, micro -factoring, micro -guarantees and 
micro -savings, provided using micro -finance technology and in favour of small producers and MSMEs operat ing 
in the rural sector.  
26 Online information from FINAGRO, viewed at: 
https://www.finagro.com.co/sites/default/files/por_linea_a_octubre_2017.pdf . 
27 MADR (2017), Memorias al Congreso de la República , 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacioncontrolgestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE
%20LA%20REPUBLICA/Memorias_al_Congreso_de_la_Republica_%202016_2017.pdf . 
28 Online information from FINAGRO, viewed at https://www.finagro.com.co/productos -y-servicios/FAG . WT/TPR/S/372/Rev.1 • Colombia  
 
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 of the total value of the loans recorded. During the period 2012 -2017, loans totalling Col$55.2  trillion 
were placed in the agricultural sector, of which 24.7% (Col$13. 7 trillion) were backed by the FAG, 
representing a total of 1,512,812 guarantees issued for an amount of Col$10.3  trillion.  
Table 4.4 Guarantees granted by the FAG, 2012 -2017 
 2012  2013  2014  2015  2016  2017  Cumulative
2012 -2017  
Number of certificates  245,412  272,928  250,559  219,879  240,441  283,593  1,512,812  
 (millions of pesos)  
Value of loans granted  6,472,143  6,961,236  8,113,152  8,486,607  10,384,869  14,775,406  55,193,413  
Value of loans guaranteed  2,081,714  2,251,235  2,214,325  1,970,676  2,363,907  2,771,430  13,653,287  
Value guaranteed  1,571,253  1,709,746  1,665,414  1,502,104  1,762,611  2,102,174  10,313,302  
Source:  FINAGRO.  
4.1.4.5   Other financing schemes  
4.46.   In addition to the loan programmes implemented by FINAGRO and the support given by the 
FAG, the sector is supported by other schemes, too, such as the Agricultural Development Fund and 
the Agricultural Solidarity Fund (FONSA).  
4.47.    FONSA, created by Law No.  302 of 1996, partially amended by Law No.  1.731 of 2 014, is an 
MADR fund, administered by FINAGRO, whose purpose is to provide economic support to small -scale 
agricultural producers and fishermen to tackle and partially or fully alleviate their debts when in the 
course of their activities they encounter cri sis situations which severely affect crops or the quality, 
volume and marketing of agricultural products. Law No.  1.694 of 2013 and its regulations in Decree 
No. 355 of 2014 expanded the scope of the Fund to encompass instances of significant and sustained  
variations in prices of agricultural products or inputs that cause severe and sustained falls in income 
for producers. Up to 2017, producers of cotton, cocoa, coffee, sugar cane, bulb onion, beans, milk, 
maize, oil palm and potatoes benefited from FONSA o n account of falling prices.29 
4.48.   In order to protect producers' incomes against currency fluctuations, the MADR rolled out a 
Programme to protect the incomes of producers of exportable agricultural goods, which operated 
until 2014. Through this programme, it supported the purchase of instruments to reduce exposure 
to exchange -rate losses. Currently, the MADR no longer has any income protection programme of 
this type.  
4.1.4.6   Agricultural insurance  
4.49.   Agricultural insurance is a tool to promote and protect production in t he agricultural sector, 
with the aim of safeguarding agricultural investments financed with appropriations provided by the 
national agricultural credit system or producers' own funds. Agricultural insurance safeguards 
against losses caused by natural risks  of climatic, geological and biological origin beyond the control 
of the insured party that affect agricultural activities, such as for example: excess or shortage of 
rainfall, strong winds, floods, freezing weather, hailstorms, landslides, avalanches, inf estations and 
disease.30 The agricultural insurance programme is drawn up annually in a resolution of the National 
Agricultural Credit Commission, and funded through the National Agricultural Risk Fund (Table 4.5).  
                                                
29 Under Law No.  1.731 of 2014, for the purposes of FONSA small producers are considered to be 
natural persons: (a) whose total assets do not exceed 2 50 SMLMVs; (b) no less than  two thirds of whose 
income stems from agricultural and/or fishing activity or who have at least 75% of their assets invested in the 
agricultural sector. Medium -sized producers for FONSA purposes are natural persons with total assets not 
exceeding 700 SMLM Vs. MADR (2017), Memorias al Congreso de la República, 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacioncontrolgestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE
%20LA%20REPUBLICA/Memorias_al_C ongreso_de_la_Republica_%202016_2017.pdf . 
30 The Agricultural insurance was instituted in 1993 by Law No.  69, managed by the Na tional 
Agricultural Credit Commission.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 4.5 Agricultural insurance  
Product  Maximum value to be insured by hectare  
(Col$  millions)  
Short -cycle crops   20.0 
Medium -yield and late -yield crops   25.5 
Forestry plantations and silvopastoral systems   8.5 
Crops in controlled environments   156.5  
Source:  Resolution No.  140 of 2017 issued by the Ministry of Agriculture and Rural Development.  
4.50.   Through FINAGRO, support is provided to producers who take out insurance by means of the 
Agricultural Insurance Incentives (ISA) scheme. In 2017, the Gov ernment subsidized agricultural 
insurance, covering between 60% and 80% of the policy value. The baseline incentive is 60% for all 
agricultural producers, which may rise to 80% if any of the following conditions are met: (a) the 
crop is a priority product under the Colombia Siembra  programme31; (b) the producer has a loan 
duly registered with FINAGRO, under FINAGRO conditions, serving to finance the insured activity; 
(c) the insured agricultural activity is on the list of products with export potential.32 The percentage 
rate of the incentive depends on the category of producer (Table 4.6). The Commission, in 
accordance with the provisions of Decree No.  2.371 of 2015, determines annually the agricultural 
insurance premium subsidy, the insurance eligibility cond itions, the budget and other actions geared 
to promoting agricultural risk management in the country.  
Table 4.6 Percentage rate of the Agricultural Insurance Incentives granted to producers, 
by category of pro ducer, 2017  
Segment  Category of producer  Premium 
subsidy  
General  Small, medium -sized and large  60% 
Priority crop under the Colombia Siembra  programme  Small  80% 
Medium -sized and large  70% 
Insured crop or activity that has been financed by the producer by 
way of an agricultural loan granted with rediscount or own funds 
from a financial intermediary under FINAGRO conditions and duly 
registered with FINAGRO  Small  80% 
Medium -sized and large  70% 
Products subject to export quotas, tariff elimination or tariff 
reductions on the part of third countries in favour of Colombia  Small  80% 
Medium -sized and large  70% 
Source: MADR Resolution No.  140. 
4.2  Mining and energy  
4.51.   Various public entities attached to  the Ministry of Mining and Energy (MinMINAS) participate 
in the mining and energy sector (Chart 4.1). Overall, the sector's institutional framework has not 
undergone any major changes since Colombia's last review in 2012. The only entity whose structure 
and duties changed was the Energy and Gas Regulatory Commission (CREG), which since 2013 has 
regulated the prices of certain petroleum -based liquid fuels.33 
                                                
31 Priority products under the Colombia Siembra  programme are: modified maize, soya beans, 
commercial forestry plantations, rubber, silvopastoral systems, rice, barley, oil palm, cocoa, avocado, mango, 
pineapple, yello w passion fruit, purple passion fruit and granadilla.  
32 The products included in the priority basket of crops with positive and negative export potential are: 
avocado, bananas, coffee, sugar cane, oil palm, plantains, Cape gooseberries, bananito, cocoa, fl owers, 
granadilla, Tahitian lime, mango, pineapple, pitahaya, purple passion fruit, oranges, mandarins, lemons, yellow 
passion fruit, lettuce, papaya, tobacco, tree tomatoes, panela cane and strawberries . 
33 Decrees No.  1.260 of 14  June 2013 and No.  1.617 o f 30 July 2013, and online information from the 
CREG, viewed at: http://www.creg.gov.co/index.php/es/sectores/2015 -02-04-20-43-06/estructura -
combustibl es. WT/TPR/S/372/Rev.1 • Colombia  
 
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 Chart 4.1 Institutions in the energy sector  
 
Source:  WTO Secretariat.  
4.52.   MinMINAS formulates national energy policy (Box 4.1), but its duties are not confined to the 
policy domain; it also supervises the sector, a responsibility it then delegates to the National Mining 
Agency (ANM) and National Hydrocarbons Age ncy (ANH) (Chart 4.1).  
Box 4.1 Objectives of energy policy  
The objectives of Colombia's energy policy are contained in a specific document, but are identified in 
successive national development plans. The curren t National Development Plan (2014 -2018) strives to 
guarantee a reliable and universal energy supply, through the rational, efficient and diversified use of energy 
sources. Objectives are set such as: responsible use of hydrocarbon resources, greater use of  natural gas, 
ensuring the constant supply of liquid fuels and biofuels, greater access to the electricity grid, and a 
better -quality electricity supply.  
Source:  WTO Secretariat.  
4.53.   Foreign investors require prior authorization from MinMINAS to invest in the mining and 
hydrocarbons sector (Section 2.4).  
4.54.   In Colombia, energy is produced from conventional sources (water, coal, natural gas and oil), 
in which Colombia is self -sufficient as things stand today. Nevertheless, the depletion of mineral and 
hydrocarb on deposits in parallel with continually growing demand for energy constitutes a challenge 
for energy production. The Mining and Energy Planning Division (UPME) estimates that there may 
very soon be a need to have recourse to imports for energy production.34 Measures have thus been 
taken to stimulate investment in the exploration and extraction of fossil fuels. To this end, in 2017, 
the authorities adopted and regulated the Tax Reimbursement Certificate (CERT), the value of which, 
determined as a percentage of the amount invested, may be used to pay national taxes.35 Similarly, 
the authorities state that companies undertaking offshore exploration projects may deduct the VAT 
paid on imports and purchases of goods and services.  
4.55.   Incentives are also being offered to promote the use of non -conventional sources (solar, wind, 
geothermal and biomass), through measures such as: (a) 50% of the amount invested deductible 
from the tax base for income tax, for a period of five years; (b) exemption from the payment of 
tariffs (imports of machinery and equipment); and (c) exemption from VAT (imports and purchases 
of machinery and equipment as well as services supplied in relation to the project, e.g. topographic 
survey, etc.).36 To be entitled to these incentives, projects must  obtain the UPME's endorsement and 
the Environmental Benefit Certificate issued by the National Environmental Licensing Agency (ANLA). 
Only projects rolled out as from 2015 can benefit from these incentives.37 
                                                
34 UMPE (2015), Integración de las energías renovables no convencionales en Colombia . Viewed at: 
http://www.upme.gov.co/Estudios/2015/Integracion_Energias_Renovables/INTEGRACION_ENERGIAS_RENOVA
NLES_WEB.pdf  and UMPE (2015), Plan Energético Nacional – Colombia: ideario energético 2050 . Viewed at: 
http://www.upme.gov.co/docs/pen/pen_idearioenergetico2050.pdf . 
35 Article 365 of Law No.  1.819 of 29  December  2016 and Decree No.  2.253 of 29  December  2017.  
36 The UPME publishes the list of goods and services exempted from tariffs and V AT, which may be 
revised at the request of companies. UPME Press Release No.  003-2016.Viewed at: 
http://www.upme.gov.co/Comunicados/2016/Comunicado_UPME_No03 -2016.pdf . 
37 Law No.  1.715 of 13  May 2014 and Decree No.  2.143 of 4  November  2015.  
Planning
Mining and Energy  
Planning Division 
(UPME ) Sector policy and 
oversight of the sector
Ministry of Mining and Energy 
(MinMINAS )
Regulation, including 
economic regulation
Energy and Gas Regulatory 
Commission ( CREG ) Management of non -renewable 
resources and delegated supervision 
of the sector
National Mining Agency ( ANM)
National Hydrocarbons Agency (ANH)WT/TPR/S/372/Rev.1 • Colombia  
 
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  4.56.   Since 2012, a new system has been put in place to administer and distribute royalties received 
by the State more equitably, namely the General Royalties Scheme (SGR), replacing the National 
Royalties Fund.38 
4.2.1   Mining  
4.57.   Mining is governed by the Constitution, the Mining Code (Law No.  685 of 11  August  2001) 
and Single Regulatory Decree No.  1.073 of 26  May 2015. In 2016, the National Mining Policy was 
adopted with the aim of creating a more transparent legal framework and fostering business 
competitiveness in order to attract more investment flows, especially c onsidering that foreign direct 
investment in the sector declined significantly as from 2015 (Section 1.3.2).39 Most mining activity 
focuses on coal extraction. In addition to coal, there is some mining of other minerals (sulphur, 
copper, iron ore, nickel an d salt), precious metals (gold, silver and platinum) and precious stones 
(emeralds).40 
4.58.   Operators in the mining sector comprise private enterprises (including multinationals) and 
mining associations (including mining cooperatives).41 Pursuant to the Mining Co de, to be able to 
operate in the mining sector foreign companies must be legally incorporated in Colombia, through 
subsidiaries or branches. A mining concession is required to prospect for and extract metals and 
minerals. Concessions are granted in so -called "free" areas, i.e. where there is no ban or restriction 
on exploitation and it is not reserved for specific mining communities. Among these free areas there 
are so -called "strategic" free areas that contain minerals and metals considered as being of str ategic 
importance (coal, copper, coltan, phosphate ores, iron ore, magnesium ores, gold, platinum, 
potassium ores and uranium).42 
4.59.   The ANM uses two methods of awarding concessions. In the case of "strategic" free areas, 
concession contracts are awarded throu gh an objective selection procedure. For the other free areas, 
concessions are awarded to applicants on a "first -come, first -served" basis, applications being 
submitted through a single window ("Radicador Web") introduced by the ANM in 2013.43 The term 
of a concession is 30 years, renewable for a further 30 years. At the end of the second term, the 
company that has been operating the concession shall have preference over the other candidates to 
reapply. Concession rights are transferable.44 
4.60.   The royalty rate s till ranges from 1% to 12%, according to the type of metal or mineral 
concerned. For coal, there are two rates, depending on the annual volume of production. Royalties 
are paid on the base price at the pithead, which is set periodically by the Central Bank  of Colombia 
(BRC) for precious metals and by the UMPE for other metals and minerals.45 The base price is the 
same for metals and minerals exported and those sold on the domestic market, except in the case 
of coal. Although in principle the base price of ex ported coal may be higher, but never lower, than 
the base price of coal for the domestic market, in 2015 the base price for exported coal was allowed 
to fall below the base price set for the domestic market. This measure was taken to offset the higher 
                                                
38 Online information from the SGR, viewed at: https://www.sgr.gov.co/Inicio.aspx . 
39 MinMINAS Resolution No.  40391 of 20  April 2016 and Ministry of Mining and Energy (2017),  Memorias 
al Congreso de la República 2016 -2017. Viewed at: https://www.minminas.gov.co/memorias -al-congreso . 
40 UPME (2017), Boletín estadístico de minas y energía 2012 -2016. Viewed at: 
http://www1.upme.gov.co/PromocionSector/SeccionesInteres/Documents/Boletines/Boletin_Estadistico_ 2012_
2016.pdf . 
41 Online information from the ANM, viewed at: 
https://www.anm.gov.co/?q=Quienes_son_los_duenos_de_los_titulos_mineros_en_Colombia . 
42 Articles  31-32 of the Mining Code, MinMINAS Resolution No.  180102 of 30  June 2012 and ANM 
Resolution No.  045 of 20  June 2012.  
43 To access the single window, see: https://www.anm.gov.co/?q=content/radi cador -web. Although the 
application process has been streamlined with the introduction of the single window, supporting documents still 
have to be submitted to one of the ANM's regional service points. Online information from the ANM, viewed at: 
https://www.anm.gov.co/sites/default/files/Documentos/abeceradicadorweb -v04092013.pdf . 
44 Mining Code, and online information from the ANM, viewed at: 
https://www.anm.gov.co/sites/default/files/DocumentosAnm/titulo_minero.pdf . 
45 Article 16 of Law No.  756 of 23  July 2002. See the base prices at: 
http://www.banrep.gov.co/es/precios -explotacion -oro-plata-platino  and 
http://www1.upme.gov.co/simco/PromocionSector/Normatividad/Paginas/Resoluciones -de-Liquidacion -de-
regalias.aspx . WT/TPR/S/372/Rev.1 • Colombia  
 
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 export costs of coal mined in the department of Norte de Santander. The authorities stress that the 
measure will be maintained for as long as the underlying circumstances persist.46 
4.61.   A surface tax is payable per hectare occupied by the mining concession. Its amo unt ranges 
between one and three current statutory minimum daily wage units. The surface tax is paid only 
during the exploration and building and assembly stages.47 
4.62.   Sales, imports and exports of gold and platinum are subject to a tax levied on the base pric e 
set by the BRC (the same base price as is used for the payment of royalties); the tax rate is 4% for 
gold and 5% for platinum.48 There is also a parafiscal contribution on emeralds, at a rate of 1% of 
the value of exports, to finance projects implemented by the National Emeralds Fund.49 
4.2.2   Hydrocarbons  
4.63.   The hydrocarbons sector is governed by the Political Constitution and Single Regulatory 
Decree No.  1.073 of 26  May 2015. Operators in the sector comprise both public and private 
enterprises. The Colombia Oil Com pany, Ecopetrol, which is a semi -public corporation with a majority 
State holding, is the largest company in the sector. Ecopetrol participates in all the sector's activities: 
exploration, exploitation, refining, transport, distribution and marketing. The private sector is also 
allowed to engage in all activities, although refining is still operated exclusively by Ecopetrol.50 
Foreign private companies have to be legally incorporated in Colombia, through branches, in order 
to operate in the sector (Section 2 .4). 
4.64.   Exploration and production (E&P) of hydrocarbons requires an E&P contract awarded by the 
ANH by means of the procedures laid down in the Regulations on Contracts for Areas for Exploration 
and Production. In 2017, new regulations were adopted, superseding those that had been in place 
since 2012.51 The new Regulations reaffirm that E&P contracts must be awarded through a 
competitive process, but may exceptionally be awarded directly. In addition, a new method of 
awarding contracts was established in order to stimulate investment, the "permanent competition" 
process, under which the ANH offers and assigns new areas throughout the year (Table 4.7), unlike 
in the open and closed competition processes, which take place in rounds organized every two yea rs 
(the last round was convened in 2014).52 The authorities report, however, that the permanent 
competition process has not yet been employed, on account of a lack of regulation. The maximum 
term of an E&P contract is 39 years, extendable until the deposit is exhausted. According to the 
authorities, 445 E&P contracts were in progress in 2017, of which 117 were being executed by 
Ecopetrol.  
Table 4.7 Methods of awarding E&P contracts  
Method  Description  
Direct award  The ANH employs this method to assign areas when there are grounds to do so for 
reasons of: (a) location of the area; (b) its geological characteristics; (c) environmental 
and social constraints; (d) lack of technical information on the subsoil; (e) public interest 
and national security; and (f) economic or energy policy.  
Open competition  The ANH convenes the competition, which is open to an unlimited number of bidders.  
                                                
46 Coal export costs increased in 2015 as a result of the closure of the border with the Bolivarian 
Republic of Venezuela, which caused the ex port of coal mined in the department of Norte de Santander from 
Venezuelan ports to be suspended. The coal had to be exported from Colombian ports further away, thus 
driving up export costs on account of higher transport costs and port fees. ANM Resolution  No. 0887 of 
26 December  2014, as amended by ANM Resolution No.  801 of 23  November  2015.  
47 Article 230 of the Mining Code, as amended by Article 27 of Law No.  1.753 of 9  June 2015, and online 
information from the ANM, viewed at: 
https://www.anm.gov.co/sites/default/files/DocumentosAnm/exploracion.pdf . 
48 Decree No.  2.173 of 30  December  1992, and online information from the BRC, viewed at: 
http://www.banrep.gov.co/es/precios -explotacion -oro-plata-platino . 
49 Decree No.  2.407 of 2000.  
50 Online information from Ecopetrol, viewed at: http://www.ecopetrol.com.co/wps/portal/es/ecopetrol -
web/nuestra -empresa/quienes -somos/lo -que-hacemos ; and UPME (2013), Cadena del petróleo . Viewed at: 
http://www.upme.gov.co/Docs/CadenadelPetroleo_sp.pdf . 
51 The Regulations are contained in ANH Agreement No.  2 of 2017. Viewed at: 
http://www.sinusanjacinto2017.com/wp -content/uploads/2017/09/Acuerdo%202%20de%202017.pdf . 
52 To participate in the permanent competition process, companies register on the ANH Register of 
Interested P arties.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Method  Description  
Closed competition  A specified number of bidders possessing the necessary capabilities (financial, technical 
and other) to execute the contract are invited by the ANH to participate in the 
competition.  
Permanent competition  The ANH publishes the map of available areas. Companies submit their bids, on the basis 
of a minimum investment specified by the ANH. Bids are published to enable other 
interested parties to submit counterbids. The first bidder has the right to match the best 
bid. 
Source:  Articles 36 and 38 of the Regulations on Contracts for Areas for Exploration and Pr oduction.  
4.65.   Royalties continue to be set at 8%, 20% or 25%, depending on the level of production. 
Royalties are paid on the base production price at the wellhead.53 The production price of natural 
gas at the wellhead may be regulated by the CREG.54 The authori ties report that regulation is 
typically employed at small, new sites where a higher price is necessary to make them economically 
viable. Petroleum production prices at the wellhead are not regulated. In addition to royalties, 
contractors pay the State for  some economic rights in respect of: (a) use of the subsurface; 
(b) training, institutional strengthening and technology transfer; (c) production share; (d) additional 
production share; and (e) high prices.55 
4.66.   Besides E&P contracts, technical evaluation agre ements (TEA) may be signed to assess an 
area's "prospects" in terms of hydrocarbons. The duration of a TEA contract is b etween 24 and 
36 months, according to the area's location (onshore or offshore). If the area is found to have 
"prospects", the contracto r has right of preference to sign an E&P contract. TEA contractors are 
required to pay for the economic right to use the subsurface.56 
4.67.   An authorization from MinMINAS is required to engage in refining, transport, storage, 
distribution and marketing activitie s, and to act as an importer.57 The authorization is granted for 
an indefinite period. Refiners, importers, distributors and major consumers of liquid fuels must be 
registered in the MinMINAS information system for liquid fuels (SICOM) in order to undertake  
transactions involving liquid fuels.58 To be able to transport hydrocarbons and liquid fuels, capacity 
must be contracted with the owner and/or operator of the transport system, who is obliged to allow 
free access to the system, without discriminating betw een applicants.59 Transport via oil and gas 
pipelines is subject to the transport tax, at a rate of 2% or 6% (depending on the provenance of the 
hydrocarbons) of the transport cost.60 
4.68.   During the period under review, price regulation was maintained on the dom estic market 
(Table 4.8). The CREG publishes the methodology and tariffs in resolutions. Since 2013, the selling 
prices of petroleum -based liquid fuels have been regulated by the CREG and MinMINAS; prior to 
that, they were regulated by MinMINAS alone. The CREG sets the prices of all petroleum -based liquid 
fuels, except petrol for motor vehicles and engine fuel oil (diesel), whose selling prices to the public 
continue to be regulated by MinMINAS.61 
                                                
53 Article 16 of Law No.  756 of 23  July 2002, and online information from the ANH, viewed at: 
http://www.anh.gov.co/Operaciones -Regalias -y-Participaciones/Regalias/Paginas/default.aspx . 
54 UPME (2012), Proyecciones de precios de gas natural y combustibles líquidos para generación 
eléctrica febrero de 2012 . Viewed at: 
http://www.sipg.gov.co/sipg/documentos/precios_combustibles/Termicas_Marzo_2012.pdf . 
55 Articles 81 -88 of ANH Decision No.  02 of 2017.  
56 Article 35 of ANH Deci sion No.  02 of 2017.  
57 Single Regulatory Decree No.  1.073 of 26  May 2015.  
58 SICOM (2016), Boletín estadístico 2011 -2015. Viewed at: http://www.sicom.gov.co/apc -aa-
files/495052435f5052454445465f30303231/Boletin_Sicom_Quinquenal_publico.pdf ; and Asociación 
Colombiana de Petróleo (2016), ACP Hidrocarburos . Viewed at: https://acp.com.co/web2017/es/archivo -
revista -acp/54 -revista -acp-edici%C3%B3n -no-16/file.html . 
59 MinMINAS Resolution No.  72145 of 7  May 2014 (regulating the transport of crude oils); CREG 
Resolutions No.  071 of 3  Decemb er 1999 (regulating the transport of natural gas) and No.  092 of 
22 September  2009 (regulating the transport of LPG).  
60 MinMINAS Resolution No.  72.537 of 5  November  2013.  
61 Decree No.  1.260 of 14  July 2013 and Single Regulatory Decree No.  1.073 of 26  May 2015. WT/TPR/S/372/Rev.1 • Colombia  
 
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 Table 4.8 Price control in the hydrocarbons sector  
(Responsible regulatory body)  
 Natural gas  Crude oil  LPG Petroleum -based liquid 
fuels  
Transport by pipeline  Yes (CREG)  Yes 
(MinMINAS)  Yes (CREG)  Yes (CREG)  
Storage  No No No No 
Marketing  Yes (CREG)  No Yes (CREG)  Yes (CREG)  
Sale Yesa (CREG)  No Yes (CREG)  Yes (CREG and MinMINAS)  
a Regulated for sales to regulated users, i.e. small -scale users. CREG Resolution No.  137 of 
10 October  2013.  
Source:  WTO Secretariat and information provided by the authorities.  
4.69.   National legislation allows the export of natural gas to be suspended when domestic 
production is insufficient to meet demand.62 The authorities emphasize that no suspensions of 
natural gas exports occurred during the review period.  
4.70.   The authorities reported that 854  thousand barrels per day (kbpd) of petroleum and 
907 million cubic feet per day (mmcfd) of natural gas were extracted in Colombia in 2017. Around 
80% of total production was extracted by Ecopetrol. Colombia has a pipeline system that is capable 
of transpo rting 265 kbpd and a storage capacity of 2.5  million barrels. There are around 
5,000  service stations in Colombia.  
4.2.3   Electricity  
4.71.   Activities in the electricity sector in Colombia are regulated by Law No.  143 of 11  July 1994 
and Single Regulatory Decree No.  1.073 of 26  May 2015. Law No.  142 of 11  July 1994 guarantees 
the coverage, continuity and quality of the public electricity service. The CREG, which issues the 
regulations governing the sector, is in the course of drafting a single resolution to facilitate 
consultation of the regulations of a general nature (which does not include specific regulations 
approving tariffs).63 
4.72.   Both private and public companies operate in the sector. The State owns ISA (Interconexión 
Eléctrica), which operates the high -voltage tran smission network and international interconnections 
with Ecuador, Peru and the Bolivarian Republic of Venezuela.64 The authorities also report that the 
State has a stake in the generating company EMGESA, which is a semi -public company. At the local 
level, t he generating company EPM belongs to the municipality of Medellín. The generating company 
Isagen was privatized in 2016.  
4.73.   A concession contract is required for the generation, transmission and distribution of electrical 
energy (Table 4.9). Concessions are g ranted for an initial period of up to 30 years, renewable for a 
further term of up to 20 years.65 No vertical integration is permitted in the sector, which means that 
the same enterprise cannot simultaneously engage in generating, transmission and distribut ion 
activities.66 Nor can transmission companies sell electricity, although generating and distribution 
companies may do so.67 In practice, there are companies that are involved in all the sector's 
activities, because they were set up before this constraint was introduced in 1994 and have been 
allowed to continue operating.68 
                                                
62 Single Regulatory Decree No.  1.073 of 26  May 2015.  
63 Online information from the CREG, viewed at: 
http://www.creg.gov.co/index.php/es/regulacion/resolucion -unica -energia . 
64 Online information from ISA, viewed at: http://www.isa.co/en/Pages/default.aspx . 
65 Article 62 of Law No.  143 of 11  July 1994.  
66 A generating company can have a stake of up to 25% in a dist ribution company (and vice versa), and 
up to 15% in a transmission company, or more if the latter earns less than 2% of total income from the 
National Interconnected System. CREG Resolutions No.  128 of 17  December  1996 and No.  095 of 
21 November  2007.  
67 Article 74 of Law No.  143 of 11  July 1994.  
68 Nieves Zárate M.T. and A. Hernández Vidal (2016), Colombia Energy Investment Report , International 
Energy Charter. Viewed at: WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 4.9 Concession contracts in the electricity sector  
Entity  Activity  
MinMINAS  Generation  
Operation of the national transmission network (high voltage)  
Operation of the interregional transmission network (high voltage)  
Governorate  Operation of the regional transmission network (high voltage)  
Municipality  Operation of the distribution network (low voltage)  
Source:  Article 57 of Law No.  143 of 11  July 1994.  
4.74.   Electricity is bought/sold on the wholesale electricity m arket (MEM), in three ways: (a)  hourly 
transactions on the spot market; (b) bilateral financial contracts on energy; and (c)  auctions for the 
purpose of allocating fir m energy commitments.69 Power plants and electricity suppliers are part of 
the MEM. According to the authorities, unregulated users may not participate directly in the MEM. 
Plants with small generating capacities (i.e. less than 20  MW) may sell electricity on the MEM or 
directly to suppliers. The MEM is run by the XM  Group ( Compañia de Expertos en Mercados ). 
4.75.   End users are categorized as regulated or unregulated. Regulated users are small consumers, 
who pay for electricity in accordance with the tariff formul a established by the CREG.70 Suppliers 
selling electricity to regulated users must buy the electricity through bilateral financial contracts, at 
the lowest price resulting from sealed -bid auctions.71 Unregulated users are large consumers whose 
monthly demand  for power (MW) or monthly consumption (MWh) exceeds the threshold levels set 
by the CREG. Currently, to be considered as unregulated, a user has to have a monthly demand of 
more than 0.1  MW or a monthly consumption of more than 55 MWh.72 Unregulated users are free 
to agree on the price of electricity with the suppliers.  
4.76.   A differentiated tariff mechanism was temporarily employed in 2016 to encourage regulated 
users to save energy. Discounts were granted to users that saved electricity, while an additional 
charge was introduced for users consuming an excessive amount of electricity.73 
4.77.   Competition regulation forbids any one company from generating more than 30% of the total 
firm energy produced in Colombia. Even though the generating market is highly concentrate d, since 
70% of electrical energy is generated by four companies, none of them has more than a 30% share.74 
4.78.   The authorities reported that electricity production in Colombia grew steadily between 2012 
and 2017, climbing from 59,890 to 64,142 GWh. Electricity  is chiefly generated in hydroelectric 
power stations, which accounted for 86% of total production in 2017. Most of the rest comes from 
thermal power plants, fired by gas and coal. Use of non -conventional sources remains rare. Colombia 
trades electricity w ith Ecuador and the Bolivarian Republic of Venezuela. Foreign trade in electricity 
with Ecuador is governed by the CAN rules, and the Colombia -Ecuador interconnection is one of the 
components of the Andean electrical interconnection system (SINEA).75 
4.3  Manufa cturing  
4.79.   The manufacturing sector's share in GDP has continued to decline since the last review in 
2012, from 12.2% of GDP in 2012 to 11.0% as at the third quarter of 2017. The principal 
                                                
https://energycharter.org/fileadmin/DocumentsMedia/Other_Publications/20160729 -
Colombia_Energy_Investment_Report.pdf . 
69 For more details, see WTO document WT/TPR/S/2 65/Rev.2 of 1  August  2012.  
70 CREG Resolution No. 119 of 21  December  2007.  
71 Aktiva Servicios Financieros (2016), Estudios sectoriales: sector de comercialización de energía 
eléctrica 2014 -2015. Viewed at: 
http://aktiva.com.co/blog/Estudios%20sectoriales/2016/Sector%20comercializaci%C3%B3n%20de%20energ
%C3%ADa_junio_2016.pdf . 
72 Article 11 of Law No.  143 of 11  July 1994 and CREG Resolution No.  131 of 31  December  1999.  
73 CREG Resolutions No.  029 of 7  March  2016, No. 039 of 15  March  2016 and No.  049 of 6  April 2016. 
For more information, see online information from EDEQ, v iewed at: 
http://www.edeq.com.co/clientes/Resoluci%C3%B3n -CREG -039. 
74 SIC PowerPoint presentation, October  2015. Viewed at: 
http://www.sic.gov.co/recursos_user/presentaciones_competencia/juan_garcia.pdf . 
75 CAN Decision No.  757 of 2 2 August  2011, online information from the CAN, viewed at: 
http://www.comunidadandina.org/Seccion.aspx?id=71&tipo=TE&title=energia  and CAN Press Release. 
Viewed  at: http://www.comunidadandina.org/Prensa.aspx?id=3625&accion=detalle& . WT/TPR/S/372/Rev.1 • Colombia  
 
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 manufacturing industries are chemicals, petroleum refining, beverages,  non-metallic product s 
and textiles.  
4.80.   Manufacturing sector policy is coordinated by the Directorate of Productivity and Competition 
in the Ministry of Trade, Industry and Tourism ( MinCIT ), structuring joint action by the public, private 
and academic sectors. The main strands of Colombia's industrial policy are set out in CONPES 
Document 3866, the National Productive Development Policy, of 8  August  2016.76 
4.81.   CONPES Document 3866 seeks to boost competitiveness and contains a productive 
development policy f or the country, with a set of sectoral and cross -cutting tools to address market, 
governance and structural failings that impede growth in productivity or make it difficult to 
modernize and upgrade Colombia's production system. The Productive Development P olicy puts 
forward three strategies. The first seeks to enhance the capacity of production units to innovate and 
adopt an entrepreneurial approach and to absorb and transfer knowledge and technology. The 
second seeks to increase efficiency and effectivenes s in access to finance, primarily for innovation 
and entrepreneurship. The third promotes compliance with quality standards on the part of domestic 
producers. The manufacturing sector is endeavouring to promote innovative businesses and achieve 
a broader r egional distribution of added value in manufacturing, which at present is concentrated in 
six departments.77 
4.82.   Colombia's manufacturing sector enjoys relatively low tariffs, with the exception of clothing 
textiles, for which tariff protection can be as high a s 40%. Based on the ISIC definition78, the average 
MFN tariff applied by Colombia to manufactures stood at 7% in 2017, as compared with 6.2% in 
August  2011.  
4.83.   As was the case in the previous review, Colombia still applies a number of trade protection 
measures  (Section 3.1.6) on manufacturing sector imports. It also applies some non -automatic 
licences, which are imposed irrespective of the product's origin.  
4.84.   In accordance with Decree No.  1.786 of 2  November  2017, a tariff of 40% is applied, which 
is higher than the MFN, for imports of articles of apparel classified under Chapters 61 and 62 of the 
HS entering the country with a value equal to or less than US$10 per kilo (threshold). When the 
declared price exceeds this threshold, the tariff will be 15%, which is t he MFN tariff. For footwear 
imports, a tariff of 35% will be applied when the goods enter with values less than or equal to a 
threshold of between US$6 and US$10 per pair, depending on the product. A 35% tariff is applied 
to imports under subheading 6406.1 0.00.00 when the declared price is below US$5. The measures 
were adopted for one year and extend, with some changes, the measures contained in Decree 
No. 1.744 of 2016. Decree No.  2.218 of 27  December  2017 set price thresholds for a number of 
products in o rder to prevent possible customs fraud involving imports of apparel and footwear, 
textiles, yarn and fabric, irrespective of the countr y of origin and/or provenance (S ection 3.1.3.1).  
4.85.   The manufacturing sector is eligible for various export support programm es available in 
Colombia, under which users are given tax concessions and benefit from streamlined customs 
procedures. One such scheme is the free zone programme (Section 3.2.4.1.1). Exporters of 
manufactured goods may also take advantage of the Plan Valle jo, which grants full exemption from 
tariffs and VAT for temporary import of inputs, raw materials, intermediate goods, capital goods and 
spare parts, provided that they are used to produce goods for export. They may also benefit from 
loans provided by the  Foreign Trade Bank of Colombia (Bancoldex). Various programmes also exist 
for promoting the activity of MSMEs (Section 3.3.1).  
                                                
76 Online information, viewed at : http://www.colombiacompetitiva.gov.co/prensa/informes/Conpes -
3866-de-2016-Politica -desarrollo -productivo.pdf . 
77 CONPES 3866, National Productive Development Policy, of 8  August  2016. Viewed at: 
http://www.colombiacompetitiva.gov.co/prensa/informes/Conpes -3866-de-2016-Politica -desarrollo -
productivo.pdf . 
78 ISIC Rev.3, Divisions  15 to 37.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  4.4  Services  
4.4.1   Financial services  
4.4.1.1   Regulation and general characteristics  
4.86.   The provision of financial services is governed primarily by:  the Political Constitution, the 
Basic Statute of the Financial System (Decree No.  663 of 2  April 1993), Law No.  964 of 8  July 2005, 
Single Decree No.  2.555 of 15  July 2010, the Basic Legal Circular and the Basic Accounting and 
Financial Circular (Table 4. 10). Since 2012, these texts have been frequently updated. For example, 
the Basic Legal Circular, initially issued in 1996, was reissued, updating its content to align it with 
the current regulations and incorporate best international practices in regard t o prudential oversight 
and regulation.  
Table 4.10 Regulatory texts governing financial services  
Legislation  Brief description  
Constitution (Article  335) Financial activities are a matter of public interest. Accordingly, they may 
only be carried out with prior authorization from the State, and the 
Government can intervene in financial activities  
Basic Statute of the Financial 
System (Decree No.  663 of 1993)  Establishes the structure of the financial system (i.e. types of institutions 
and their responsibilities); the procedures for constituting financial 
institutions and other rules governing their operations  
Law No.  964 of 2005  Establishes the objectives and criteria to which the Government shall 
adhere in regulating financial activities  
Single Decree No.  2555 of 2010  Consolidates rules governing the financial sector (e.g. levels of solvency or 
indebtedness)  
Basic Legal Circular (External 
Circular No.  029/14 of 
3 October  2014)  Sets out general and specific requirements for the operation of financial 
institutions and the provision of financial services (e.g. the establishment of 
representative offices of foreign institutions).  
Recognizes the rights of users of financial services  
Basic Accounting and  Financial 
Circular (External Circular 
No. 100/95 and amendments 
thereto)  Determines accounting and financial requirements and information 
reporting requirements for financial institutions  
Source:  WTO Secretariat.  
4.87.   The task of guaranteeing the smooth functioning of the Colombian financial system lies in the 
hands of a number of entities. These are: the Central Bank of Colombia (BRC), the Ministry of Finance 
and Public Credit (MinHacienda), the Colombian Financial Supervisory Authority ("Superfinanciera "), 
the Securities Market Self -Regulator (AMV), the Financial Institutions Guarantee Fund (FOGAFIN) 
and the Financial Cooperatives Guarantee Fund (FOGACOOP) (Chart  4.2). These institutions make 
up the Financial System Security Network, in which they partic ipate in order to coordinate action in 
the event of failures in the system. Some of them also take part in the Financial System Coordination 
Committee (FSCC), which guards against potential risks to the stability  of the financial system 
(Chart  4.2).79 The S upervisory Authority for Economic Solidarity ("Supersolidaria") is the entity 
responsible for supervising savings and credit cooperatives, which also engage in financial 
intermediation operations, although they are not classified as financial institutions as such.  
                                                
79 Banco de la República (2013), El sistema financiero colombiano: estructura y evolución reciente , 
Revista del Banco de la República. Viewed at: http://www.banrep.gov.co/es/revista -1023. WT/TPR/S/372/Rev.1 • Colombia  
 
- 139 - 
 
 
 Chart 4.2 Functioning of Colombia's financial system  
 
Source: BRC (2013), Revista Nº 1023 . Viewed at: http://www.banrep.gov.co/es/revista -1023. 
4.88.   There are no restrictions on private participation, whether national or foreign, in the financial 
sector in Colombia.80 Foreigners require prior authorization f rom Superfinanciera to be able to invest 
in the sector.  
4.89.   Colombia's financial system is composed of credit institutions, financial services companies 
and other financial institutions, which may be, for example, special official institutions (or second -tier 
banks), insurance companies and companies specializing in electronic deposits and payments 
(Table  4.11).81 In 2017, there were 61 credit institutions, of which 36% were foreign entities.  
4.90.   Companies specializing in electronic deposits and payments (SEDPEs) are a new type of 
financial institution, created in 2014 to boost financial inclusion. Although electronic deposits had 
already existed as a financial product on the Colombian market since 2011, they were only provided 
by credit institutions.82 Unlike the l atter, SEDPEs do not grant loans; their operations are restricted 
to payment, transfer and giro transactions. An SEDPE must be constituted by Colombian natural or 
legal persons, and comply with the rules under the Basic Statute of the Financial System. Its  
operations have to fulfil prudential requirements, for example in regard to leverage.83 As at end 
2017, one SEDPE had been set up (Table 4.11).  
Table 4.11 Structure of Colombia's financial system, December  2012 and 2017  
Type of institution  Number of 
institutions  
Dec.-2012  Dec.-2017  
Credit institutions  58 61 
Banks  23 25 
Commercial financing companies  24 15 
Financial cooperatives  7 5 
Investment banks  4 5 
Financial services companies  45 34 
General bonded warehouses  4 3 
Pension fund and severance fund managers  12 4 
Specialized foreign exchange intermediation and financial services companies  2 1 
Trust companies  27 26 
Other  103 101 
Insurance and reinsurance companies  54 63 
Special official institutions (second -tier banks)  11 11 
                                                
80 Article 91 of the Basic Statute of the Financial System.  
81 Basic Statute of the Financial System (updated). Viewed at: 
http://www.sec retariasenado.gov.co/senado/basedoc/estatuto_organico_sistema_financiero_pr002.html#53 . 
82 BBVA Research (2015), "E -money regulation in Colombia", Digital Economy Outlook, 
September  2015. Viewed at: 
https://ww w.bbvaresearch.com/wpcontent/uploads/2015/09/Situacion_Economia_Digital_sep15_C ap4.pdf . 
83 Law No.  1.735 of 21  October  2014 and Decree No.  1491 of 13  July 2015.  
Ministry of Finance and Public  
Credit 
: Determines regulatory  
policy for the financial and  
securities market system  
Central Bank  
: 
Provides liquidity to  
financial institutions and acts as  
lender 
- 
of 
- 
last 
- 
resort 
Financial Supervisory Authority  
of Colombia  
: Oversees financial  
institutions and adopts inspection  
and monitoring policies  
Financial Institutions Guarantee Fund  
:  
Manages deposit insurance for credit  
institutions (excluding financial cooperatives)  
Financial Cooperatives Guarantee  
Fund 
: 
Manages deposit insurance for  
financial cooperatives  
Securities Market Self  
Regulator  
: Regulates and  
oversees the securities market  
Financial  
System  
Coordination  
Committee  
Colombia’s  
Financial  
System WT/TPR/S/372/Rev.1 • Colombia  
 
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  Type of institution  Number of 
institutions  
Dec.-2012  Dec.-2017  
Investment management companies  10 2 
Stockbrokers  55 21 
Capitalization companies  5 3 
Companies specializing in electronic deposits and payments  n.a. 1 
Total  238 185 
n.a. Not applicable: This type of company was created in 2014.  
Source:  Information provided by the authorities.  
4.91.   In addition to financial sector institutions, there are 181 savings and credit cooperatives, 
overseen by Supersolidaria, which, although not cla ssified as credit institutions, provide financial 
intermediation services, albeit only to their members. In June  2017, these cooperatives had assets 
valued at Col$12.4 trillion and their loan portfolio stood at Col$10.1 trillion.  
4.92.   To be able to operate in t he Colombian financial sector, they have to meet a number of 
conditions and requirements. In particular, there is a minimum capital requirement, which is updated 
annually in line with the consumer price index (Table 4.12). In the case of financial cooperat ives and 
savings and credit cooperatives, the minimum capital is known as "minimum social contributions", 
also updated annually.  
Table 4.12 Minimum capital requirement by type of institution, 2012 -2017  
(Col$  million)  
Minimum capital  2012  2013  2014  2015  2016  2017  
Credit institutions  
Banks  73,750  75,550  77,016  79,835  85,240  90,142  
Commercial financing companies  19,001  19,465  19,843  20,570  21,963  23,226  
Financial cooperativesa 3,267  3,340  3,437  3,591  3,591  3,714  
Financial corporations  26,823  27,478  28,012  29,038  31,004  32,787  
Financial services companies  
Pension fund and severance fund managers  16,768  17,178  17,512  18,153  19,382  20,497  
Severance fund managers  5,597  5,734  5,846  6,060  6,471  6,844  
Pension fund managers  11,179  11,452  11,675  12,103  12,923  13,667  
Specialized foreign exchange intermediation 
and financial services companies  8,842  9,058  9,234  9,572  10,221  10,809  
Trust companies  5,597  5,734  5,846  6,060  6,471  6,844  
Other institutions  
Reinsurance companies  33,639  34,460  35,129  36,415  38,881  41,117  
Insurance companies  8,414  8,620  8,788  9,110  9,727  10,287  
Insurance companies providing only 
insurance on export loans  7,499  7,682  7,832  8,119  8,669  9,168  
Savings and credit cooperativesa 1,095  1,120  1,153  1,205  1,205  1,246  
Other financial institutions  4,475  4,585  4,674  4,846  5,175  5,473  
Capitalization companies  4,475  4,585  4,674  4,846  5,175  5,473  
Companies specializing in electronic deposits 
and payments  n.a. n.a. 5,846  6,060  6,471  6,844  
a The minimum capital (social contributions) is set by fiscal year.  
n.a. Not applicable: This type of company was created in 2014.  
Source:  Online information from Superfinanciera, viewed at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTipo=publicaciones&lFun
cion=lo adContenidoPublicacion&id=61318 . 
4.93.   Colombia currently has 12 financial groups (conglomerates) operating in 25 markets and 
bringing together 44.5% of the institutions in Colombia's financial system. Colombian financial 
conglomerates have embarked on an ambiti ous expansion process, especially in Central America.84 
This expansion was particularly strong between 2012 and 2017, as reflected in the growth in their 
                                                
84 Colombian financial conglomer ates have a particularly big presence in El Salvador, where they hold 
53% of total banking assets, and in Nicaragua and Panama, with over 20%.  WT/TPR/S/372/Rev.1 • Colombia  
 
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 assets (from US$41  million in 2012 to US$80  million in 2017) and number of subsidiaries ( from 163 
in 2012 to 236 in 2017) abroad.85 
4.94.   In 2017, the Law on Financial Conglomerates and Mechanisms for the Resolution of Financial 
Institutions was promulgated, which lays down the scope of supervision and regulation of financial 
conglomerates and their holding compan ies.86 This Law introduces regulation that is in line with 
international best practices, following IMF and OECD recommendations. Among other relevant 
aspects, it introduces prudential requirements for holding companies and special supervisory powers 
granted  to Superfinanciera, which can order changes in a financial conglomerate's structure where 
necessary to maintain its stability.87 
4.95.   Superfinanciera participates in various initiatives for cross -border supervision of financial 
conglomerates: the organization o f cross -border panels of supervisors; participation in the 
Central  American Council of Superintendents of Banks, Insurance and Other Financial Institutions 
(CCSBSO); signing memoranda of understanding with supervisory authorities in countries in which 
Colombian financial conglomerates are present; and visits to subsidiaries of Colombian financial 
conglomerates abroad.88 
4.96.   Between 2012 and 2017, Colombia continued to implement the Basel III rules, not only for 
the banking sector but also for other financial ins titutions. For example, the prudential framework 
was revised to increase the capital requirement for credit institutions, pension and severance fund 
managers and second -tier banks.89 In particular, a new measure of solvency was introduced for 
credit institu tions and second -tier banks. As from 2013, they have to comply with a basic solvency 
ratio of 4.5%, while the total solvency ratio remains at 9%, a stricter level than that foreseen under 
Basel II (8%). Furthermore, the system for managing stockbrokers' li quidity risks was 
strengthened.90 Other measures introduced to strengthen the pr udential framework include: 
(a) strengthening capital with higher -quality instruments based on Basel III; (b) unifying the 
prudential capital framework for credit institutions, special official institutions and cooperatives; and 
(c) strengthening liquidity risk indicators. In 2017, the IMF welcomed Colombia's efforts to bring 
financial sector regulation and supervision closer to Basel III.91 
4.97.   Financial institutions (except financia l corporations) may hold a stake in the capital of general 
bonded warehouses and trust companies, pension and severance managers, stockbrokers and, as 
from 2014, companies specializing in electronic deposits and payments.92 Their holdings in such 
companies may not be less than 51%, except in the case of general bonded warehouses, for which 
there is no limit. Total investment by an institution in another shall not exceed 100% of its capital, 
capital reserves and capital revaluation account.93 
                                                
85 Explanatory memorandum on Draft Law No.  119 of 2016 and Superfinanciera PowerPoint presentation 
of 5 October  2015. Viewed at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTipo=publi caciones&lFuncion=load
ContenidoPublicacion&id=10085945 . 
86 Law No.  1.870 of 21  September  2017.  
87 MinHacienda Press Release No.  119. Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty;jsessionid=nSOyZd9ECE1wcOZ -
te6ZncRcnBtJeVcXjTv_Gce55RoMsC49W7hk! -87823345?nodeId=%2F OCS%2FP_MHCP_WCC -
074866%2F%2FidcPrimaryFile&revision=latestreleased . 
88 Superfinanciera PowerPoint presentation of 8  October  2014. Viewed at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTipo=publicaciones&lFuncion=load
ContenidoPublicacion&id=10084137 . 
89 Decree No.  2.255 of 15  July 2010, as amended by Decrees No.  1.771 of 23  August  2012 and 
No. 1.548 of 19  July 2012; MinHacienda Press Release of 24  August  2012. Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty;jsessionid=UA_6XanxjAGokJsVNVPtasR4sotd
JIO_wZZbf6n3gNCQWxXbO7On! 16024601?nodeId=%2FOCS%2FMIG_5942624.PDF%2F%2FidcPrimaryFile&re
vision=latestreleased . 
90 Superfinanciera Press Release of 23  April 2014.  
91 Online information from the IMF, viewed at: 
https://www.imf.org/es/News/Articles/2017/03/17/mcs31717 -colombia -staff-concluding -statement -of-the-
2017-article -iv-mission . 
92 Article 119 of the Basic Statute of the Financial System, amended by Article 4 of Law No.  1735 of 
21 October  2014.  
93 Chapter VII (paragraph 2.2) of Title I of the Basic Legal Circular (External Circular No.  029/14 of 
3 October  2014).  WT/TPR/S/372/Rev.1 • Colombia  
 
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  4.98.   Mergers of financial institutions and takeovers have to be authorized by Superfinanciera. It 
may raise objections when it considers that the merger or takeover may harm competition or affect 
the stability of the financial system. It is deemed that competition is degr aded when the institution 
resulting from the merger covers 25% of the market. Superfinanciera's objections have to be 
endorsed by MinHacienda. Any purchase of 10% or more of the equity of a financial institution by a 
(domestic or foreign) investor has to b e approved by Superfinanciera.94 
4.99.   Deposits are insured through FOGAFIN or FOGACOOP (Table 4.13). There is a ceiling on the 
deposit insurance, by account holder and institution, which was increased from Col$20  million to 
Col$50  million in 2017. In this regard , Colombia has decided to align on international best practices, 
which recommend periodical review of the maximum deposit insurance value; Colombia will carry 
out such a review every three years.95 FOGAFIN deposit insurance is funded from the premiums paid 
by participating institutions, at a rate of 0.3% of the amount of the liabilities.96 
4.100.   Colombia maintains a levy on financial movements, payable by users and institutions of the 
financial system. The tax is paid each time a transaction is effected, although t here may be 
exemptions. During the period under review, the rate of the levy has been modified by successive 
tax reforms; it currently stands at 0.4%.97 
Table 4.13 Deposit insurance, 2017  
 Participating institutions  Deposit insurance 
ceiling in 2017  Resolution  
FOGAFIN  Banks, financial corporations, 
commercial financing companies 
and specialized companies in 
electronic deposits and payments  Col$50  million  FOGAFIN Resolution No.  002 
of 18 April 2017 
FOGACOOP  Financial cooperatives  
Savings and credit cooperatives  Col$20  million  
Col$12  million  FOGACOOP Resolution 
No. 031 of 2010, as 
amended by Resolution 
No. 16 of 29  July 2015  
Source:  WTO Secretariat.  
4.101.   The financial sector continues to be one of the most dynamic sectors of the economy. The 
ongoing increase in total assets and loan portfolios since 2012 has allowed the sector to achieve 
higher financial deepening indices in relation to GDP (Table 4.14).  
Table 4.14 Colombian financial system indicators, December  2012 to 2017  
 Dec-201
2 Dec -2013  Dec -2014  Dec -2015  Dec -201
6 Dec -2017  
Total assets  (Col$ trillion)  867.2  963.1  1,099.3  1,229.1  1,400.9  1,556.2  
Credit institutions  372.8  427.8  480.9  550.4  574.6  608.7  
Financial services companies  396.1  429.7  501.0  551.8  648.7  737.4  
Other  98.3 105.6  117.4  126.9  177.6  210.1  
Assets/GDP  (%) 130.3  136.2  145.4  150.6  162.4  172.0  
Total credit  (Col$ trillion)  247.6  281.8  310.2  360.8  386.7  405.8  
Banks  231.0  263.0  290.6 . 336.1  375.4  393.7  
Financial corporations  - 0.1 0.3 0.4 0.2 - 
Commercial financing companies  14.6 16.4 17.4 22.2 8.7 9.6 
Financial cooperatives  2.1 2.3 1.8 2.1 2.3 2.6 
Credit/GDP (%)  37.2 39.8 41.0 45.1 44.8 44.9 
Source:  Information provided by the  authorities.  
                                                
94 Articles 58, 64 and 88 of the Basic Statute of the Financial System.  
95 Online information from the Office of the President of the Republ ic, viewed at: 
http://es.presidencia.gov.co/noticia/170419 -Gobierno -aumenta -de-20-millones -a-50-millones -cobertura -del-
seguro -de-depositos . 
96 Article 323 of the Basic Statute of the Financial System, and online information from FOGAFIN, 
viewed at: https://www.fogafin.gov.co . 
97 Articles 870 -872 of the Tax Statute (Decree No.  624 of 30  March  1989), Article 45 of Law No.  1.735 
of 23 December  2014 and Article 214 of Law No.  1.819 of 29  December  2016.  WT/TPR/S/372/Rev.1 • Colombia  
 
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 4.4.1.2   Banking  
4.102.   Foreign banks must be legally incorporated in Colombia in order to operate. Commercial 
presence is achieved through subsidiaries and, as from 2013, branches may also be established.98 
There are no restrictions on the operations of subs idiaries and branches, which may provide the 
same services and sell the same financial products as Colombian banks. Foreign banks may also 
open representative offices in Colombia; they are required to hav e a legal representative in 
the country.  
4.103.   To operate in the banking sector, it is necessary to obtain a n authorization certificate 
(or operating permit) from Superfinanciera. Where subsidiaries and branches are established, the 
parent institution must be subject to consolidated supervision in its home locati on and be domiciled 
in a country/territory that allows exchange of information. The authorization certificate is issued for 
an indefinite period and is not transferable. Banks, including subsidiaries, must be set up in the form 
of commercial public limited  companies or cooperative associations. Branches may, however, 
operate as such. The minimum capital requirement for setting up a bank was Col$90,142  million in 
2017 (Table  4.12). There is no limit on the number of banks that may operate in the Colombian 
market, nor on the number of bank offices; authorization from Superfinanciera must be obtained in 
order to open or close an office.  
4.104.   Colombian residents are free to make deposits in banks domiciled abroad; when they wish 
to take out a loan, however, they have  to first register with the Central Bank (BRC).99 There are no 
limits on the amount of transactions with foreign banks.  
4.105.   The Colombian banking market comprised 25 banks in 2017, of which eight were subsidiaries 
of foreign banks; there were no branches of for eign banks. Furthermore, 12 banks belonged to a 
financial conglomerate. Five new banks were authorized between 2012 and 2017. In 
December  2017, banking sector assets stood at Col$580.9 trillion, made up chiefly of the loan 
portfolio (67.8%) and investments  (17.8%). The banking market continues to display a high degree 
of concentration, insofar as the three main banks account for 52.9% of total assets.  
4.106.   The breakdown of bank loans, by type or sector, remained largely unchanged during the 
period under review ( Table 4.15). The loan portfolio grew only moderately after 2016, which may 
be explained by a contraction in production activity, higher interest rates and a slackening in 
domestic demand.100 While the quality of the portfolio was maintained by risk managemen t on the 
part of the banks, the default rate rose to 4.5% in December  2017, its highest level since 
December  2012 (Table  4.15).101 
Table 4.15 Loan portfolio and default rate trends, 2012 -2017  
Loan portfolio  Dec-2012  Dec-2013  Dec-2014  Dec-2015  Dec-2016  Dec-2017  
Total (Col$ trillion)a 251.9  286.3  329.6  381.6  410.7  430.3  
 (% of the total)  
Commercial  60.0 59.3 59.8 58.6 56.5 55.5 
Agriculture  3.3 3.1 3.0 2.7 2.6 2.5 
Trade  11.5 10.6 10.8 11.0 10.3 10.5 
Construction  7.4 8.0 7.6 8.2 8.2 8.3 
Industry  10.6 10.0 10.3 9.7 9.6 9.5 
Mining and electricity supply  5.2 4.5 5.2 5.3 4.8 4.5 
Services  5.8 5.7 5.6 5.3 5.1 4.9 
Other  16.2 17.4 17.3 16.4 15.9 15.1 
Consumption  28.0 27.6 27.1 26.2 27.5 28.1 
Micro -loans 2.8 2.9 2.8 2.8 2.7 2.8 
Housing  9.2 10.2 10.3 12.5 13.3 13.7 
 
                                                
98 Article 53 of the Basic Statute of the Financial System.  
99 Articles 25 and 55 of BRC External Resolution No.  8 of 5  May 2000 (updat ed). Viewed at: 
http://www.banrep.gov.co/sites/default/files/reglamentacion/archivos/re_8_2000_compendio.pdf . 
100 BRC (2017), Financial Stability Rep ort, March  2017. Viewed at: 
http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/fsr_march_2017.pdf . 
101 Online information from Asobancaria , viewed at: http://www.asobancaria.com/2017/02/06/edicion -
1076-balance -del-sector -bancario -en-2016-y-perspectiva -creditica -2017. WT/TPR/S/372/Rev.1 • Colombia  
 
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  Default rate (%)  Dec-2012  Dec-2013  Dec-2014  Dec-2015  Dec-2016  Dec-2017  
Total portfolio  2.9 2.9 3.0 2.9 3.2 4.5 
By type of loan:        
Commercial  1.9 2.0 2.2 2.2 2.3 3.9 
Consumption  4.9 4.5 4.4 4.5 5.0 6.1 
Micro -loans  6.1 6.4 7.5 6.5 7.2 7.7 
Housing  2.9 2.7 2.7 2.4 2.6 3.1 
a Does not include loans to employees.  
Source:  Data provided by the authorities.  
4.107.   The interest rates that banks charge on loans and loan arrears may not exceed one and a 
half times the current monthly bank interest rate, which is set by Superfinanciera.102 The interest 
rates charged for housing loans are subject to ceilings, which are set by the Central Bank.103 
4.108.   The development of banking activities since 2012 has been u nderpinned by solid prudential 
indicators (Table 4.16). In particular, the total and basic solvency ratios always remained above the 
respective minimum levels of 9% and 4.5%. Banks also displayed good profitability, albeit with some 
fluctuations.  
Table 4.16 Some prudential indicators for the banking sector, 
December  2012 -December  2017  
(%) 
Indicators  Dec-2012  Dec-2013  Dec-2014  Dec-2015  Dec-2016  Dec-2017  
Total solvency  16.0 15.2 15.6 15.4 15.9 16.7 
Basic solvency  n.a. 10.1  10.4 10.1 10.3 11.0 
Liquidity risk  2.1 1.8 1.8 1.9 2.2 1.2 
Return on assets (ROA)  15.1 13.1 13.3 13.9 15.6 9.0 
Return on equity (ROE)  16.0 15.2 15.6 15.4 15.9 16.7 
n.a. Not applicable.  
Source:  Data provided by the authorities.  
4.4.1.3   Insurance  
4.109.   The conditions under which a foreign insurance (or reinsurance) company can be set up and 
operate on the Colombian market are the same as those that have to be met by foreign banks 
(Section 4.4.1.2). An authorization certificate (or operating permit) from Superfinanciera is required. 
The company may establish subsidiaries and, since 2013, also branches. It can also establish 
representative offices.104 As with banks, there are no limitations on the operations of subsidiaries 
and branches , which can operate in the same insurance segments as Colombian insurance 
companies.  
4.110.   In general, cross -border trade in insurance is not permitted. However, since 2013 it has 
been allowed in some cases. Thus, insurance companies abroad are able to provide i nsurance 
coverage in Colombia only for international transport (maritime and air) and international transit 
risks. In such cases, Superfinanciera may request the foreign insurance companies to register in 
Colombia. The consumption of foreign insurance is a llowed. Colombian residents are entitled to take 
out any type of insurance abroad, with the exception of insurance policies in respect of 
disability/death, occupational risks, mandatory insurances and annuities.105 The authorization 
certificate for providing  insurance services in Colombia is granted for individual insurance segments, 
                                                
102 The current bank interest rate is set on the basis of the information supplied by the financial 
institutions for the previous month. Bank interest rates are posted at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTipo=publicaciones&lFuncion=load
ContenidoPublicacion&id=10829 . Article 884 of the Commercial Code, Single D ecree No.  2.555 of 15  July 2010, 
and online information from Superfinanciera, viewed at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTipo=publicaciones&lFuncion=load
ContenidoPublicacion&id=10082008&reAncha=1 . 
103 Law No.  546 of 23  December  1999.  
104 Article 53 of the Basic Statute of the Financial System.  
105 Articles 3 9-40 of the Basic Statute of the Financial System, as amended by Law No.  1.328 of 
15 July 2009. The amendments introduced by Law No.  1.328 of 2009 entered into force in 2013.  WT/TPR/S/372/Rev.1 • Colombia  
 
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 i.e.: (1)  general; (2) life and personal; and (3) social security.106 Although insurance companies may 
operate in one or more segments, those that provide individual life insurance  may not operate in 
another segment, unless the insurance operations in question are complementary to its activity. 
Similarly, reinsurance companies can only engage in reinsurance operations.  
4.111.   Insurance companies, including subsidiaries, must be set up in t he form of commercial public 
limited companies or cooperative associations. Branches of foreign insurance companies can operate 
in their existing legal form. In 2017, the minimum capital required to establish an insurance company 
was Col$10,287  million, ex cept for insurance companies that only supported export credit, for which 
the minimum capital requirement was Col$9,168  million (Table 4.12). To this minimum capital must 
be added the technical capital required to operate in each of the segments, which ran ges from 
Col$1,839  million (educational insurance) to Col$3,374  million (motor vehicle insurance).107 There 
is no limit on the number of insurance companies that may operate in the Colombian market, nor 
on the number of agencies; Superfinanciera authorizatio n must be obtained to open or close an 
agency. Prior authorization of policies and tariffs from Superfinanciera is only necessary when the 
company is starting up its activities in Colombia, changing segment or beginning to operate in a new 
segment. Models of policies must be filed with the SFC before being put into use.108 
4.112.   Contracts may be signed with reinsurers located abroad which are listed in the corresponding 
Superfinanciera register. Companies are registered if they obtain adequate accreditation from an  
international agency. In 2017, 222 foreig n reinsurers were registered in  Colombia.109 
4.113.   Superfinanciera also authorizes and supervises insurance and reinsurance intermediaries. 
Insurance and reinsurance brokers require a certificate of authorization from Superfinanciera and 
must attest to minimum capital adequacy (respectively, Col$409  million and Col$163  million in 
2017).110 Insurance agents must be listed in the corresponding Superfinanciera register and prove 
at least one year's residence in Colombia.  
4.114.   In 2017, there were 45 insurance companies in Colombia, 26 of which were subsidiaries of 
foreign companies (there were no branches of foreign insurers). Twelve insurance companies 
belonged to a financial conglomerate with a bank incorporated in Colombia. Four  new insurance 
companies started up between 2012 and 2017. Twenty -six insurance companies were operating in 
the damage insurance segment and 19 in life insurance.  
4.115.   Since 2012, the nominal value of premiums has increased by 12% per year on average, to 
around  Col$23.9 trillion in 2017, yet the insurance penetration rate remains very weak, at under 
3% of GDP (Table 4.17). The low penetration ratio is explained by the lack of an "insurance culture" 
in Colombia (the only mandatory insurances are life insurance fo r mortgages and traffic accident 
insurance) and by the income levels which do not enable everyone to take out insurance, but is also 
an indication of the considerable potential for developing the market.111 Average per capita 
expenditure on insurance (densit y indicator) stood at Col$484,471 in 2017.  
                                                
106 Online information from the Colombian Federation of Insurers (FASECOLDA), viewed at: 
http://www.fasecolda.com . 
107 Online information from FASECOLDA, viewed at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTipo=publicaciones&lFuncion=load
ContenidoPublicacion&id=61318 . 
108 Article 184 of the Basic Statute of the Financial System. The provisions on insurance contracts and 
policies are contained in the Commercial Code (Articles 1045 and 1047 of the Commercial Code – Decree 
No. 410 of 27  March  1971).  
109 Chapter V of Title II of  the Basic Legal Circular, and online informati on from Superfinanciera, 
viewed  at: 
https://www.superfin anciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTipo=publicaciones&lFuncion=load
ContenidoPublicacion&id=15499 . 
110 Articles 1348 -1349 of the Commercial Code (Decree No.  410 of 27  March  1971). Online info rmation 
from Superfinanciera, v iewed at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTipo=publicaciones&lFuncion=load
ContenidoPublicacion&id=61318 . 
111 Online information from FASECOLDA, viewed at: http://www.fasecolda.com/index.php?cID=2040 . WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table 4.17 Insurance sector indicators, December  2012 to November  2017  
 Dec-2012  Dec-2013  Dec-2014  Dec-2015  Dec-2016  Nov-2017  
Total premiums  (Col$ trillion)  16.1 19.1 19.4 21.9 24.6 23.9 
 (% of total premiums)  
General  54.1 49.0 52.5 53.4 51.8 48.7 
Life and personal  45.9 51.0 47.5 46.6 48.2 51.3 
Social security (Col$ trillion)  3.9 5.8 4.8 5.2 6.4 6.7 
Vehicle insurancea (Col$ trillion)  1.3 1.5 1.7 1.9 2.1 2.0 
Premiums/GDP (%) 2.4 2.7 2.6 2.7 2.8 2.8 
a Mandatory third -party insurance for physical injury caused by traffic accidents.  
Source:  Information provided by the authorities.  
4.4.1.4   Securities market  
4.116.   The legal framework regulating securities market operat ions in Colombia comprises: (i)  Law 
No. 964 of 8  July 2005112, establishing the general rules and identifying the objectives and criteria 
to be followed by the Government in regulating the handling, utilization or investment of resources 
deposited by the public in t he form of securities issued locally or abroad; (ii) Law No.  1.328 of 2009, 
which sets out the principles and rules governing the protection of financial consumers in their 
dealings with institutions supervised by Superfinanciera; (iii) Decree No.  2.555 of  2010 (as amended 
by Decree No.  1.827 of 2012), regulating the list of foreign securities in the foreign securities listing 
systems, incorporates these securities in the definition of intermediation and authorizes both private 
investors and professional in vestors to participate in this market; and Resolution No.  8 of 2000, 
Decree No.  2.080 of 2000 and External Circular DCIN -83 of 2009, which contain the currency 
regulations applicable to the purchase/sale of foreign securities.  
4.117.   The Colombian Securities Exch ange (BVC) is a private company that manages the trading 
and recording systems for the equity, fixed -income, derivatives, currency, over -the-counter (OTC) 
and issuer services markets. Additionally, it participates along the whole of the securities industry  
value chain through holdings in the Central Securities Depository (Deceval S.A.), the 
Central  Counterparty Clearing House (CRCC) and the Foreign Exchange Clearing House (CCCD). The 
value of BVC transactions on the fixed -income and equity markets at 31  December  2017 stood at 
Col$1.32 trillion. At the same date, there were 69 listed issuers. Ecopetrol stands out as the issuer 
with the largest market capitalization, having a stock market value of Col$90.9 trillion at 
31 December  2017, followed by: Banco de Bo gotá, Col$22.3 trillion ; Aval Group holding company, 
Col$19.7 trillion ; Grupo de Inversiones Suramericana, Col$18.9 trillion . The largest foreign issuer 
with equity quoted on the BVC is CEMEX LATAM Holding, with Col$6.1 trillion.  
4.118.   In accordance with Law No.  964 of 2005, securities market activities in Colombia comprise: 
issuance and offer of securities; intermediation of securities; management of securities funds, 
investment funds, mutual investment funds, ordinary and special trust funds; securities deposit  and 
management; management of trading or recording systems for securities, futures, options and other 
derivatives; clearing and settlement of securities; risk rating; and self -regulation.  
4.119.   Law No.  1.328 of 2009 (Article 89) pr ovides for regulation, by the Government, of 
cross-border trade in financial services. The Law stipulates that, in performing this function, the 
Government may authorize foreign agents to have direct access to the Colombian securities market 
and give approval or recognition that they f ulfil the necessary requirements to access the services 
of Colombian securities market infrastructure providers.  
4.120.   Responsibility for regulation of the securities market currently lies with Superfinanciera, 
which in 2014 took over the role previously dischar ged by the Securities Supervisory Authority, 
which was merged with the Banking Supervisory Authority .113 Superfinanciera is responsible for 
                                                
112 Amended by Law No.  1450 of 2011 and Law No.  1328 of 2009; amplified by De cree No.  3960 of 
2010 and by Decree No.  3886 of 2009, partially abrogated by Law No.  1094 of 2006, partially regulated by 
Decree No.  2555 of 2008 and by Decree No.  4759 of 2005.  
113 The entities supervised are: securities markets; agricultural and agro -indus try goods and product 
markets; futures and options markets; securities trading system managers; companies engaged in clearing 
and settlement of securities, futures, options, etc.; central counterparty clearing houses; currency trading and 
recording system managers; currency clearing and settlement system managers; centralized securities deposit 
managers; stockbrokers; independent securities brokers; mutual investment funds with as sets of WT/TPR/S/372/Rev.1 • Colombia  
 
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 ongoing inspection, control and monitoring of compliance with the provisions regulating the 
securities market, settin g the technical and legal criteria for compliance with those rules and 
specifying the procedures for their proper implementation. It is also charged with: monitoring 
compliance with the Central Bank's rules in regard to persons subject to its ongoing inspe ction and 
supervision; trading and recording of securities or securities issuers in the National Securities and 
Issuer Register (RNVE); registration in the National Register of Securities Market Agents (RNAMV); 
registration in National Register of Securiti es Market Professionals (RNPMV); and enforcing the 
prudential measures laid down in the Code of Civil Procedure and other preventive measures laid 
down in Law No.  964 of 2005 and its amplifying regulations.114 
4.121.   Superfinanciera facilitates the delivery of info rmation to the market through the 
Comprehensive Securities Market Information System (SIMEV). The SIMEV is composed of the 
following registers: the RNVE, the RNAMV and the RNPMV. The RNVE registers all categories and 
types of securities, as well as securit ies issuers and the issuances they make; public offerings of 
securities must be preceded by registration in the RNVE.115 The RNAMV registers securities market 
entities which are subject to permanent inspection and monitoring by Superfinanciera, except issuer s 
of securities in respect of their securities issuance activities; listing on this register is a prerequisite 
for operating in the securities market. The RNPMV registers natural persons who discharge treasury 
duties or functions, carry out transactions on  money desks, manage securities funds, investment 
funds and mutual investment funds, or perform duties relating to transactions carried out on money 
desks; listing on this register is a prerequisite for operating in the securities  market.116 
4.122.   MinHacienda Decr ee No.  1.523 of 29  September  2016 broadens the range of entities that 
can have securities registered temporarily in the RNVE and stipulates that temporary registration in 
the RNVE does not imply automatic listing of the securities in question in the BVC.  
4.123.   Decree N o. 2.555 of 2010 created the secondary market to generate financing for MSMEs. 
The secondary market is only for transactions carried out by professional investors, except in the 
case of the trading of shares or of bonds convertible into shares among  the shareholders of an issuer 
company, subscription of shares or bonds convertible into shares involving right of preference, or 
repurchases of shares, which can be effected by the general public.117 Securities that have been on 
the secondary market can be transferred to the primary market, with prior authorization from 
Superfinanciera. Decree No.  1.019 of 2014 seeks to stimulate and revive the secondary market, 
ensuring that MSMEs enter the securities market. To this end, it provides that securities on the 
secondary market will not need to be cleared for listing in the RNVE, but will be considered as 
automatically listed therein, whenever certain required information is submitted to Superfinanciera.  
4.124.   Derivatives markets also operate in Colombia, which are div ided into OTC (outside the 
stock  market) markets and organized markets. The participants in OTC markets are chiefly large 
financial institutions, companies in the real sector, the Central Bank and foreign institutions that 
comply with the requirements set forth in BRC External Regulatory Circular DODM -144. On the OTC 
market, transactions tend to involve big amounts. It is subject to only light regulation, especially in 
                                                
4,000  SMMLVs or more; guarantee funds; investment managers; securitiza tion companies; and securities 
rating companies.  
114 These measures include ensuring timely delivery of the respective assets to a professional 
administrator, under similar conditions to those prevailing on the market.  
115 In accordance with the provisions of Decree No.  2.555 of 2010, issuers of securities shall ensure the 
RNVE is kept permanently up to date by submitting periodical information to Superfinanciera; this information 
shall also be sent to the trading systems on which the securities in question are  being traded.  
116 Securities Supervisory Authority (2013), Guía del Mercado de Valores . Viewed at: 
http://www .bvc.com.co/pps/tibco/portalbvc/Home/Empresas/Guia_Mercado_Valores?com.tibco.ps.pagesvc.acti
on=updateRenderState&rp.currentDocumentID=7ca0c036_147b6b20b27_5e970a0a600b&rp.revisionNumber=
1&rp.attachmentPropertyName=Attachment&com.tibco.ps.pagesvc.targetPage =1f9a1c33_132040fa022_ -
78750a0a600b&com.tibco.ps.pagesvc.mode=resource&rp.redirectPage=1f9a1c33_132040fa022_ -
787e0a0a600b . 
117 A professional investor is understood to mean any person who has the necessary experience and 
knowledge to properly understand, ass ess and manage the risks inherent in any investment decision. To be so 
classified, the investor shall be required to certify to the intermediary, at the time of their classification, 
possession of assets worth 10,000  SMMLVs or more, and fulfil at least one  of the following conditions: (a) hold 
a securities investment portfolio worth 5,000 SMMLVs or more; (b) have effected directly or indirectly 15 or 
more sale or purchase operations, over a period of 60 calendar days, going back no more than two years 
before the time of their classification. The aggregate value of these operations must be equal to or greater 
than the equivalent of 35,000 SMMLVs.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  regard to the characteristics and regulation of the various contracts that may be structu red and 
transacted. Only agents supervised by Superfinanciera (or natural or legal) persons through the 
intermediary of authorized agents supervised by Superfinanciera  may operate directly in the 
organized markets. They have a relatively high "retail" comp onent and the amount of each 
transaction tends to be smaller than for transactions on the OTC market. Regulation of the organized 
market is founded on Law No.  964 of 2005, which sets out the general framework for standardizing 
derivative financial instrume nts, treating them as "securities", as well as on the various rules issued 
by the BVC, such as the BVC General Regulation on the Derivatives Market or the Regulation on the 
Centralized Trade and Registration Operations System – Colombian Electronic Market (MEC). This 
regulation has achieved some standardization of derivative contracts currently transacted in 
the BVC.118 
4.4.2   Telecommunications  
4.125.   The information and communication technologies sector (ICT sector) is regulated by Law 
No. 1.341 (ICT Law) of 30  July 2009 and Single Regulatory Decree No.  1.078 of 26  May 2015, which 
contains a compilation of various regulatory decrees relating to Law No.  1.341.119 The provision of 
television services is governed by Law No.  182 of 20  January  1995.  
4.126.   The main entities in the ICT sector are the Ministry of Information and Communication 
Technologies (MinTIC) and the Communications Regulatory Commission (CRC). Other institutions 
involved in ICTs include the National Spectrum Agency (ANE), the National Television Authority 
(ANTV), the  Supervisory Authority for Industry and Trade (Superindustria, or SIC) and, since 2017, 
the National Planning Department (DNP).  
4.127.   MinTIC formulates and implements ICT policy and oversees the sector's activities. During 
the period under review, ICT policy was  set forth in the Vive Digital ("Go Digital") plans (Box  4.2). 
The authorities reported that MinTIC, with the support of the CRC, also shaped a comprehensive 
strategy for development of the digital economy, to support the ongoing transformation of the 
economic sectors. This strategy was accompanied in 2017 by an institutional reform, whereby the 
Vice-Ministry for the Digital Economy was created within MinTIC and the Directorate of Digital 
Development within the DNP.120 The authorities indicated that they beli eve it would also be necessary 
to establish a multisectoral committee to coordinate acti ons on developing the digital  economy.  
Box 4.2 Telecommunication sector policy  
The aim of the ICT policy, which is set forth in successive Vive Digital plans, is to strengthen the ICT sector in 
order to create employment and achieve more transparent and efficient governance (e -government). With 
this in mind, the Vive Digital plan for the People (2014 -2018) proposes to ushe r in widespread use of Internet 
services, building on four initiatives: (1) infrastructure; (2) service; (3) applications; and (4) users. The 
authorities report that, in regard to infrastructure: 100% of municipalities have access to high -speed 
connections ; there are 4,500 community Internet access centres and 1,100 Wi -Fi areas nationwide; and 
ten submarine cables are in operation. Initiatives have also been launched to p romote the digital economy: 
for example, through the Apps.co programme more than 100,00 0 users have been provided with advice on 
establishing and consolidating their businesses.  
Source:  WTO Secretariat and information provided by the authorities.  
4.128.   The CRC, chaired by the Minister of ICTs, is the regulatory body for the ICT sector. Providers  
pay the CRC an annual fee for its regulatory services, which in 2017 was equivalent to 0.1% of gross 
income received in 2016. An OECD study in 2014 questioned the CRC's independence from the 
                                                
118 Securities Supervisory Authority (2013), Guía del Mercado de Valores . Viewed at: 
http://www.bvc.com.co/pps/tibco/portalbvc/Home/Empresas/Guia_Mercado_Valores?com.tibco.ps.pagesvc.acti
on=updateRenderState&rp.currentDocume ntID=7ca0c036_147b6b20b27_5e970a0a600b&rp.revisionNumber=
1&rp.attachmentPropertyName=Attachment&com.tibco.ps.pagesvc.targetPage=1f9a1c33_132040fa022_ -
78750a0a600b&com.tibco.ps.pagesvc.mode=resource&rp.redirectPage=1f9a1c33_132040fa022_ -
787e0a0a600b . 
119 For example, the decrees regulating: the granting and renewal of permits for use of the 
radio-frequency spectrum (Decrees No.  4.392 of 23  November  2010 and No.  2.044 of 19  September  2013); 
economic consideration for use of the radio -frequency spectrum and peri odic payments into the Information 
and Communication Technologies Fund (Decree No.  542 of 13  March  2014); and the Register of 
telecommunication network and service providers (Decree No.  2.433 of 17  December  2015).  
120 Decrees No.  1.414 of 25  August  2017 and No. 2189 of 23  December  2017.  WT/TPR/S/372/Rev.1 • Colombia  
 
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 Government.121 It was pointed out that the participation of two  members of the Government on the 
CRC's (five -member) board could influence decision -making. In line with the OECD's 
recommendations, the CRC's independence has been reinforced: with effect from 2015, the board 
can convene meetings and adopt resolutions witho ut the presence of the Minister of ICTs, whereas 
previously the board could not meet without the Minister.122 While the OECD's study exposes certain 
weaknesses in terms of independence, it points to the fact that the CRC "delivers effective regulation, 
informed by a comprehensive stocktaking of international best practices". The OECD study also 
advocates giving the CRC more sanctioning powers, insofar as it has no power to supervise activities 
and impose sanctions.  
4.129.   The authorities reported that the State has announced it is selling its stake (30%) in 
Colombia Telecomunicaciones. Some public telecommunication companies exist at the local level, 
for example ETB (which provides services in Bogotá), EPM  (in Medellín) and Metrotel 
(in Barranquilla).  
4.130.   There are no re strictions on foreign holdings in companies in the telecommunication sector. 
To operate on the Colombian market, foreign providers have to be incorporated in Colombia. The 
provision of telecommunication networks and services is governed by a general approv al regime 
which requires Colombian and foreign providers to be listed in the ICT register held by MinTIC.123 
Registration is free of charge. The registration certificate authorizes the operator to provide the 
service.124 
4.131.   Apart from "approved" providers, there are providers still operating under a licence to supply 
telecommunication services. These are providers which did not join the general approval regime 
instituted in 2009 and continue to operate under the licensing regime that governed the sector prior 
to 2009. The ICT Law allows both regimes to coexist, so the licences can be kept until they expire; 
thereafter, the providers will have to adhere to the general approval regime to continue operating.125 
In 2017, only one operator (Colombia Móvil) had a licence, which is due to expire in 2023; according 
to the authorities, this operator may join the app roval regime at any  time. 
4.132.   Use of the radio -frequency spectrum requires a permit granted by MinTIC through an 
objective selection process, for example an auction.126 During the review period, 4G frequencies 
were auctioned, in 2013. The spectrum usage permit is granted for an initial term of up to ten  years, 
renewable at the request of the holder for the same or a shorter period.127 Frequencies can be 
assigned directly, wh en service continuity so requires, but only for a certain time, until the objective 
selection process is convened.128 
4.133.   In regard to competition, it is the CRC's role to: (i) define relevant markets, at the national 
and local level; (ii) identify operators wit h a dominant position; and (iii) enact regulatory measures 
(e.g. tariff regulation).129 
4.134.   Tariffs in the telecommunication sector may be freely set. Nevertheless, some markets are 
subject to tariff caps (Table 4.18). The tariff regulation in the mobile voice m arket is explained by 
the presence of an operator (Claro) that holds a dominant position. To determine whether a 
dominant position is occupied in a relevant market, the CRC analyses a number of criteria, such as 
market share (expressed in terms of number o f users and volume of traffic and income) or market 
                                                
121 OECD (2014), OECD Review of Telecommunication Policy and Regulation in Colombia . Viewed at: 
https://www.oecd -ilibrary.org/science -and-technology/oecd -review -of-telecommunication -policy -and-
regulati on-in-colombia_9789264208131 -en. 
122 Article 207 of Law No.  1.753 of 9  June 2015.  
123 See the MinTIC Single Window for formalities and services at: 
http://www.mintic.gov.co/portal/6 04/w3 -propertyvalue -6157.html . 
124 Article 10 of Law No.  1.341 of 2009 and Single Regulatory Decree No.  1.078 of 2015.  
125 Transition regime provided for in Article 68 of Law No.  1.341 of 2009.  
126 The ANTV assigns frequencies allocated for the operation of tele vision services.  
127 The period may be shortened for reasons of public interest, spectrum refarming or compliance with 
international rules.  
128 Single Regulatory Decree No.  1.078 of 2015 which is a compilation of Decrees No.  4.392 of 
23 November  2010 and No.  2044 of 19  September  2013.  
129 Title III of CRC Resolution No.  5.050 of 10  November  2016. This resolution is a compilation of the 
regulations (in force) of a general nature issued by the CRC.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  concentration. According to the authorities, there is no threshold above which an operator is deemed 
to hold a dominant position.130 
Table 4.18 Tariff regulati on in 2017  
Relevant market  Outgoing mobile voice  Fixed -mobile call termination  
Grounds for regulation  Existence of an operator with a dominant 
position in the relevant market  Existence of market failure in the 
relevant market  
Regulated operator  Claro Colombia Móvil  
Tariff cap  Maximum Off Net  tariff per minute <  ½ the 
On Net tariff per minute + access chargea  Maximum termination charge per 
minute: Col$92.9 (incl. tax)  
CRC Resolution  No. 2066 of 2009 (ex -CRT), amended by 
No. 4.002 of 2012  No. 4.900 of 2016  
a Off Net tariff: Tariff for calls originating on the Claro network and terminated on the network of 
another provider. On Net  tariff: Tariff for calls originated and terminated on Claro's network.  
Source:  WTO Secretariat and online information from the CRC, viewed at: 
https://www.crcom.gov.co/es/pagina/an -lisis-del-mercado -de-terminaci -n-de-llamadas -fijo-m-vil. 
4.135.   During the review period, tariffs on the fixed -mobile call termination market were regulated 
for all operators until 2016, the year when the CRC decided that the market could operate on the 
basis of free competition. Nevertheless, at the same time, it decided to maintain the tariff regulation 
for Colombia Móvil, which has a licence to provide mobile services. In this case, the CRC considered 
that there was a market failure justifying regulation on account of the coexistence of the general 
appro val and licence regimes. Under the general approval regime, fixed -service operators set the 
tariffs for calls originating on their network and terminating on the mobile network, whereas under 
the licence regime it is stipulated that the mobile service oper ator sets the tariffs for calls originating 
on the fixed network and terminating on its network.  
4.136.   The CRC also regulates access (or interconnection) charges, which fell during the period 
under review.131 In Colombia, it is the caller that pays the access char ge.132 The charges, which the 
operators have to publish, are adjusted annually, using a tariff updating index.133 All operators pay 
the same access charges. However, a regulatory measure was introduced between 2013 and 2017 
to minimize the impact of Claro's do minant position on the mobile voice market, whereby Claro 
received a lower access fee from its competitors than it paid to them.134 Tariffs for the provision of 
the national roaming service are also regulated.135 
4.137.   During the period under review, the CRC adopted  measures to promote greater competition 
and a better offering on the mobile services market. In particular, the operating conditions for virtual 
mobile operators (VMOs) were streamlined136, and conditions governing the provision of the national 
roaming serv ice were introduced in 2013, enabling operators and users to enjoy coverage at all 
times.137 In addition, minimum duration (one year) clauses are prohibited in mobile service 
contracts. Such clauses can still be agreed in fixed -service contracts when the user is granted a 
                                                
130 CRC Resolution No.  5.050 of 10  November  2016.  
131 Online informatio n from the CRC, viewed at: https://www.crcom.gov.co/es/noticia/crc -promueve -
reducci -n-de-tarifas -en-servicios -de-telecomunicac iones-celulares . 
132 Title IV of CRC Resolution No.  5.050 of 10  November  2016.  
133 The access charges may be viewed at: https://www.crcom.gov.co/es/pagina/valores -regulados . The 
tariff updati ng index may be viewed at: https://www.crcom.gov.co/es/pagina/valores -regulados . 
134 CRC Resolution No.  4.002 of 9  November  2012 and FEDESARROLLO (2013), Estudio de la regulación 
de cargos de acceso en telefonía móvil y una propuesta para Colombia . Viewed at: 
http://www.fedesarrollo.org.co/wp -content/uploads/2014/01/Informe -final-Avantel_pagina -web.pdf . 
135 CRC Resolution No.  4.112 of 28  February  2013, as amended by CRC Resolution No.  4.660 of 
30 December  2014 and CRC Resolution No.  5.107 of 23  February  2017.  
136 CRC Resolut ion No.  4.807 of 6  October  2015 allows VMOs to request the CRC directly to assign 
telephone numbers. Previously, these were assigned by the mobile network operators from which the MNOs 
lease the infrastructure. Furthermore, CRC Resolution No.  5.108 of 24  February  2017 obliges MNOs to grant 
access to VMOs, prohibits a series of clauses in the lease contracts and lays down the procedure for setting the 
value of services provided by MNOs to VMOs in the event of dispute.  
137 CRC Resolution No.  4.112 of 28  February  2013, amended by CRC Resolution No.  4.660 of 
30 December  2014 and CRC Resolution No.  5107 of 23  February  2017.  WT/TPR/S/372/Rev.1 • Colombia  
 
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 discount on installation of the service.138 Number portability is in place for the mobile telephone 
service.  
4.138.   A provider must grant unrestricted access to its infrastructure, without discriminating among 
its compet itors. Lease contracts may include minimum du ration clauses (in general, one  year). The 
CRC regulates the maximum amount of monthly consideration payable for the lease of ducts and 
poles; the tariff caps are adjusted annually on the basis of the producer p rice index.139 The amount 
of consideration payable for the rest of the infrastructure is not regulated.  
4.139.   All providers pay a periodic consideration for the provision of telecommunication networks 
and services. For approved providers, the periodic consideratio n is 2.2% of their gross quarterly 
income and for licensed providers it is 3% of their net quarterly income. Consideration is also payable 
for use of the radio -frequency spectrum, in an amount calculated according to the formula 
established by MinTIC.140 
4.140.   The periodic financial considerations were used to finance the subsidies granted to 
low-income users between 2010 and 2015. The authorities stated that, although no subsidies have 
been granted since 2015, low -income users benefit from preferential tariffs for  Internet access. The 
considerations also finance universal access projects implemented by the Information and 
Communication Technologies Fund (FONTIC).  
4.141.   In 2012, the import tariff on computers and mobile devices was reduced to 0%, and it has 
been kept at t hat level since. Purchases of computers with a sale price under Col$860,000 are 
exempt from VAT. On the other hand, mobile telephone services have been subject to excise tax 
(4%) since 2013 for the mobile voice service and since 2017 for the mobile data se rvice.141 The 
excise tax was already levied on fixed voice and data services in 2012.  
4.142.   The penetration index, which measures the number of subscriptions per 100 inhabitants, 
rose during the review period, except in respect of fixed voice services. The biggest  growth was 
recorded in data services, both fixed and mobile. The authorities report that Colombia reached 
28.4 million broadband Internet connections at the end of the third quarter of 2017.  
4.143.   According to the authorities, in 2017 Colombia had 30 fixed tele phone service operators, 
60 fixed data service operators, eight mobile service operators and more than 60 pay -TV operators. 
There are three large operators in the mobile services market: Claro (COMCEL brand), Colombia 
Telecomunicaciones (Movistar brand) an d Colombia Móvil (Tigo brand), which served 90% of users 
in 2017 (Chart 4. 3). The remainder of mobile service users are shared among five  operators, 
including three VMOs, namely Virgin (the fourth -biggest operator), Almacenes Éxito Inversiones 
(Móvil Éxito  brand) and Uff Móvil. Claro (Telmex brand) and Colombia Telecomunicaciones were also 
present in the fixed services market, and together with EPM  Telecomunicaciones (UNE brand) held 
70% of the fixed voice market and 93% of the fixed data market in 2017 (Ch art 4.3).  
                                                
138 Article 41 of Law No.  1.480 of 12  October  2011, CRC Resolutions No.  4.444 of 25  March  2014 and 
No. 4.930 of 28  April 2016, and online information from the CRC, viewed at: 
https://www.crcom.gov.co/pagina/cl -usulas -de-permanencia -para-servicios -de-comunicaciones . 
139 Chapter 10 of CRC Resolution No.  5.050 of 10  November  2016.  
140 Single Regulatory Decree No.  1.078 of 2015, MinTIC Resolution No.  290 of 26  March  2010, Decree 
No. 1.972 of 13  July 2003, and online information from the National Spectrum Agency, viewed at: 
http://www.ane.gov.co/index.php/2015 -12-08-19-09-44/13 -preguntas -y-respuestas -frecuentes/136 -
clasificacion -tematica -cnabf . 
141 Tax Reform 2017 (Law No.  1.819 of 29  December  2016); onli ne information from the CRC, viewed 
at: https://normograma.com/crc/docs/concepto_crc_0030014_2015.htm ; and online information from the 
Colombian Association of Systems Engineers (ACIS), viewed at: http://www.acis.org.co/portal/content/el -
impacto -de-la-reforma -tributaria -en-el-servicio -de-telecomunicaciones . WT/TPR/S/372/Rev.1 • Colombia  
 
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  Chart 4.3 Fixed and mobile services market, 2017 Q3  
 
Source:  Information provided by the authorities.  
4.4.3   Transport  
4.4.3.1   Air transport and airports  
4.4.3.1.1   Air transport  
4.144.   The provision of air transport services is regulated by: the Commercial Code (Book  Five)142; 
Law No.  105 of 30  December  1993 (Title IV) and its regulatory decrees; Law No.  336 of 
20 December  1996 (which confers on the air transport service the status of essential public service); 
Single Regulatory De cree No.  1.079 of 26  May 2015143; Law No.  12 of 1947 approving the Chicago 
Convention; and the agreements on air services. Likewise, the Colombian Aviation Regulations 
(RAC) , issued by the Special Administrative Unit for Civil Aviation (Aerocivil), are rules  governing 
the provision, safety and quality of aeronautical and airport services.144 The RACs are amended as 
necessary to reflect new provisions adopted by the International Civil Aviation Organization (ICAO).  
4.145.   The main entities in the sector are the Ministr y of Transport (MinTransporte) and Aerocivil. 
MinTransporte formulates and implements air transport policy (Box 4.3). Aerocivil is the aeronautical 
authority, regulating and supervising aeronautical and airport activities; its duties also encompass 
coordin ating the determination of air policy with MinTransporte and conducting negotiations on 
                                                
142 Decree No.  401 of 27  March  1971.  
143 This DUR's compilation includes Decree No.  1.647 of 1994 regulating Article 48 of Law No.  105 of 
1993, on airport classification.  
144 See the list of RACs at: http://www.aerocivil.gov.co/normatividad . 
Claro
30.1%
EPM
Telecom
21.8%Colombia
Telecom 
18.2%ETB
17.4%Other
12.5%Fixed voice market
Total subcriptions: 7,115,984
Virgin Mobile  
2.5%Almacenes Éxito 
Inversiones 
1.0%%
Total subcriptions : 60,783,374  Total subcriptions : 24,073,323Total subscriptions : 6,238,792 ETB
10.4%Claro
37.1%
EPM 
Telecom.
20.4%Colombia
Telecom.
15.5%
AVANTEL
3.0%ETB
1.0%
Virgin Mobile  
4.5%
Colombia 
Telecom. 
23.2%Almacenes Éxito 
Inversiones 
1.9%ETB
1.5%AVANTEL 
2.4%
Uff Móvil
0.1%
Colombia 
Móvil 
18.3%
Claro
57.4%Uff Móvil
0.2%
Colombia 
Móvil 
12.4%EDATEL
3.3% Other
13.2%
Colombia 
Telecom.
22.8%Claro
47.9%Fixed data market
Mobile voice marketMobile data marketWT/TPR/S/372/Rev.1 • Colombia  
 
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 agreements on air services. Furthermore, Aerocivil is the exclusive provider of air traffic control and 
aeronautical telecommunication services.145 
Box 4.3 Air transport sector policy  
As at 2017, Colombia had signed 45 bilateral agreements. A total of 13 new bilateral agreements have been 
signed since 2012 (Canada, Costa Rica, El  Salvador, Israel, Jordan, Luxembourg, Netherlands , New Zealand, 
Paraguay, Portugal, Spain, Switzerland and United Arab Emirates). Furthermore, 15 agreements were revised 
to introduce a greater degree of operational flexibility.  
The prime objective of Colombia's commercial aviation policy is to achieve increasing liberalization in the 
provision of air transport services, i.e. without restrictions for operations under the third and fourth air 
freedoms. In the Latin American and Caribbean region, Colombia grants traffic rights up to the fifth air 
freedom; outside this area, fifth freedom rights are negotiated on the basis of the principle of reciprocity and 
equivalent markets. The authorities report that 18 of the agreements signed by Colombia are open -skies 
agreements, including the agreement with the Unit ed States (which fully entered into force in 2013, after 
two years of transition) and the agreement with Brazil that was revised in 2016, which will offer an open -skies 
regime after five years of transition.  
Source:  Information provided by the authorities.  
4.146.   Competition in the air transport sector is governed by competition legislation (Section  3.3.4). 
Aerocivil continues to be responsible for authorizing agreements on: code sharing, joint operations, 
aircraft charter and interchange arrangements,  and airspace closure. According to the authorities, 
Aerocivil has never refused these types of agreements. For its part, the Supervisory Authority for 
Industry and Trade (SIC) guards against anti -competitive practices in the sector. According to the 
autho rities, to date there have not been any instances of economic concentration in the air transport 
sector, nor of any fines for anti -competitive practices.  
4.147.   Cabotage in air transport is restricted to Colombian aircraft.146 There are no restrictions on 
foreign capital holdings in national airlines. Foreign airlines have to establish a branch in Colombia 
to be able to provide international transport services. Furthermore, the majority of their employees 
(90%) must be Colombia ns. This obligation is waived when the airline's country of origin does not 
impose such restrictions on Colombian airlines, or when it is lifted by Aerocivil on account of a lack 
of Colombian candidates. Similarly, 90% of the staff of a national airline ha ve to be of Colombian 
nationality, as well as the captain of an aircraft registered in Colombia. Since the last review, access 
to the domestic air transport market has become more flexible, insofar as restrictions on the number 
of operators per route were eliminated in 2012. Previously, only three, five or six airlines were 
allowed to operate, according to the number of passengers transported, on each route.  
4.148.   The provision of scheduled air services from/to Colombia is governed by the content of 
agreements on  air services or, where there are none, by the principle of reciprocity. An operating 
permit is required, issued by Aerocivil, to provide international scheduled air transport services. 
Colombian airlines also require an operating certificate guaranteeing that they comply with the 
technical requirements to be able to fly. Foreign airlines must apply for such a certificate, irrespective 
of whether there is an agreement on air services between their country/territory of origin and 
Colombia. Where there is no agreement, the operating permit is granted if there is reciprocity and 
the service is deemed to be needed and useful. Operating permits are granted (and renewed) for 
five years, and are not transferable.  
4.149.   Non-scheduled (charter) services have to be "formall y" authorized by Aerocivil. The 
application for authorization must be submitted 72 hours in advance of the planned flight date (this 
time-frame may be shortened in high season). Non -scheduled air transport is subject to specific 
operating conditions, for e xample the number of charter flights on the same route may be limited.147 
The authorization to provide non -scheduled services is granted for the period covering provision of 
the service and is not transferable.  
                                                
145 Decree No.  260 of 28  January  2004, as amended by Decree No.  823 of 16  May 2017, RAC No.  4 
(Airworthiness standards and aircraft operation) and Single Regulatory Decree No.  1079 of 2015.  
146 Article 1.785 of the Commer cial Code.  
147 Article 1.856 of the Commercial Code, sections 3.6.3.5.5 and 3.6.3.5.6 of RAC No.  3, as amended by 
Aerocivil Resolution No.  02062 of 18  July 2017, and online information from Aerocivil, viewed at: 
http://www.aerocivil.gov.co/servicios -a-la-navegacion/servicio -de-informacion -aeronautica -ais/generalidades . WT/TPR/S/372/Rev.1 • Colombia  
 
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  4.150.   Colombian airlines may operate foreign aircraft , as long as their certificate of registration 
was issued by one of the member States of ICAO. When operating on domestic flights, foreign 
aircraft acquire Colombian nationality. Aerocivil approval is required to import aircraft; for the 
importation of cer tain types of aircraft, an import licence has to be obtained.  
4.151.   Colombia liberalized air transport tariffs in 2012. Airlines freely set their tariffs, which have 
to be communicated to Aerocivil.148 The price of an air ticket includes: the basic airline price; VAT; 
airport taxes; and the administration fee for issue of the ticket. For international flights, the following 
are also included: tourism tax (Section 4.4.4); departure tax, payable by all passengers; and the 
domestic stamp duty, only payable by Colombia n residents. However, some passengers may be 
exempted from paying the departure tax or domestic stamp duty. The ticket price may include a 
fuel charge. Since 2012, it is the airline that sets the amount of the fuel charge and decides whether 
or not to incl ude it in the ticket price. Previously, Aerocivil used to set the amount of this charge and 
it had to be included in the price of the air ticket.149 Airlines pay the parafiscal contribution for the 
promotion of tourism ( Section 4.4.4).150 
4.152.   A permit from Aerociv il is required to provide ancillary services, such as maintenance and 
repair in aeronautical workshops or ground handling services at airports. The permit is granted and 
(automatically) renewed for five years. However, both domestic and foreign airlines ca n handle the 
receipt, dispatch and maintenance of their own aircraft without having to obtain such a permit from 
Aerocivil, provided that these functions are covered in their operating permits.  
4.153.   Pursuant to the Commercial Code, subsidies may be granted to p ublic enterprises in the air 
industry. The authorities reported that the semi -public company Servicios Aéreos Esenciales 
(Satena) receives subsidies as the sole air transport company providing service on "social routes", 
thus serving remote areas by air. A ir transport companies can benefit from the Vallejo Plan for 
services, which allows capital goods to be imported with a total or partial tariff waiver and deferred 
payment of VAT, subject to their exporting a minimum amount of services (1.5 times the f.o.b . 
value).151 Fuel used for the operation of international flights is not subject to the national carbon tax 
(Section  3.1.4).152 
4.4.3.1.2   Airports  
4.154.   An operating permit from Aerocivil is required to build and operate an airport in Colombia.153 
The State, through Aerocivil, owns 67 airports, of which 15 are operated under concession by the 
private sector. Airport concession holders may be private companies or semi -public companies, in 
which the State shall not hold more than a 50% stake.154 
4.155.   Since 2014, it has been the National Infrastructure Agency (ANI) that signs and administers 
concession contracts, a duty which was formerly entrusted to Aerocivil. A concession contract is 
awarded through a public bidding process. Whereas t heir duration ranged between 15  and 25 years 
for the contracts signed by Aerocivil, the contracts signed by the ANI are for a maximum term of 
30 years, inclusive of extensions.155 In 2017, seven concession contracts had been signed.156 The 
consideration payable to the State for the operation and running of airpo rts takes different forms: it 
may be a percentage of the concession holder's gross income, or a flat -rate contractual value plus 
                                                
148 Aerocivil Resolution No.  904 of 28  February  2012 and SIC  (2015), Estudios Económicos Sectoriales: 
Una Visión General del Sector Transporte Aéreo en Colombia , December. Viewed at: 
http://www.sic .gov.co/sites/default/files/files/Una_Vision_General_del_Sector_de_Transporte_Aereo_en_Colo
mbia.pdf . 
149 Aerocivil Resolution No.  839 of 13  March  2003 and Aerocivil Resolution No.  904 of 28  February  2012.  
150 Online information from the National Tourism Fund, viewed at: http://fontur.com.co/productos -y-
servicios/que -es-contrubucion -parafiscal -tipos-de-aportamtes -base-liquidacion/49 . 
151 Online information from ProColombia, viewed at: http://www.invie rtaencolombia.com.co/zonas -
francas -y-otros-incentivos/38 -zonas -francas -y-otros-incentivos/zonas -francas -y-otros-incentivos/106 -plan-
vallejo -de-servicios.html . 
152 Communication of 10  February  2017 from the DIAN, viewed at: 
http://www.dian.gov.co/descargas/EscritosComunicados/2017/Concepto_Impuesto_al_Carbono_Ley_1819_de
_2016.pdf . 
153 RAC No.  14 (Airfields, airports and heliports).  
154 Article 48 of Law No.  105 of 30  December  1993.  
155 Law No.  1.508 of 10  January  2012.  
156 Online information from the ANI, viewed at: https://www.ani.gov.co/modo -aeropuertos . WT/TPR/S/372/Rev.1 • Colombia  
 
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 a variable amount based on gross income. The concept of economic consideration does not feature 
in new contracts, where an expe cted revenue arrangement is preferred: under the concessions, the 
State gives over the income from airport taxes and airport charges to the concession holder, except 
for the flight protection service fee, which continues to be collected by Aerocivil.157 Each concession 
contract specifies which income items are given over to the concession holder. Airport taxes and 
airport charges are regulated by means of tariff caps, which are periodically updated, using the 
methodology agreed in the contract.158 Holders of ai rport concessions pay the parafiscal contribution 
for the promotion of tourism (Section 4.4.4).  
4.156.   In the airports it operates, Aerocivil sets the amount of airport taxes, which is updated 
annually. The airlines collect the airport taxes on behalf of Aerocivi l, and receive a commission of 
2% on the amount collected.  
4.157.   Passenger air traffic continues to grow in Colombia (Table 4.19). A total of 35.6  million 
passengers were transported in 2017, which is 44.7% more than at the start of the period under 
review. Most  of this traffic is generated by domestic flights. The significant increase in the number 
of international passengers (from 7.7 to 12.3  million between 2012 and 2017) is explained by the 
introduction of new routes, more frequent flights and greater capacit y on the routes operated. The 
volume of air freight remains low; Colombia's exports by air largely consist of fresh flowers.  
Table 4.19 Air transport statistics, 2012 -2017  
 2012  2013  2014  2015  2016  2017  
Passengers transported (millions)  24.6 28.6 30.9 34.0 35.8 35.6 
Domestic flights  16.9 19.8 21.0 23.1 24.0 23.3 
International flights  7.7 8.8 9.9 10.9 11.8 12.3 
External trade (thousands of tonnes)  570.8  562.3  580.9  590.5  610.9  648.9  
Imports  230.2  216.0  213.4  212.8  209.3  226.6  
Exports  340.6  346.3  367.5  377.7  401.6  422.3  
Source: Information provided by the authorities.  
4.4.3.2   Maritime transport and ports  
4.4.3.2.1   Maritime transport  
4.158.   The provision of maritime transport services is governed by the Commercial Code 
(Book  Five)159 and Single Regulatory Decree No.  1.079 of 26  May 2015, which compiles 
Decree  No. 804 of 8  May 2001 regulating the public maritime transport service.  
4.159.   The Ministry of Transport (MinTransporte) and the General Maritime Directorate (DIMAR) 
are the  main institutions in the sector. MinTransporte formulates maritime transport policy, while 
DIMAR, which comes under the Ministry of Defence, is the national maritime authority, executing 
the policy and regulating the sector's activities.  
4.160.   Access in interna tional maritime transport is governed by the principle of reciprocity. Where 
there is no reciprocity, MinTransporte may restrict access to the market. Likewise, Colombia and the 
other member States of the CAN may jointly restrict access to their markets in  the event of 
discrimination against vessels of one of the member States, pursuant to CAN Decision  390. The 
authorities emphasize that Colombia does not restrict access to its maritime transport market.  
4.161.   Maritime cabotage has to be provided using vessels fl ying the Colombian flag. Pursuant to 
CAN Decision 659, vessels flying the flag of one of the CAN member States are considered to be 
under the Colombian flag (subject to the principle of reciprocity). Notwithstanding this general 
restriction, DIMAR may auth orize the use of vessels flying a foreign flag when there are no Colombian 
vessels available to provide the service. According to the authorities, cases of cabotage services 
                                                
157 Article 19 of Aerocivil Res olution No.  504 of 27  February  2017.  
158 Online information from the ANI, viewed at: https://www.ani.gov.co/modo -aeropuertos  and 
FEDESARROLLO (2016), Competitividad en el transporte aéreo en Colombia . Viewed at: 
http://www.repository.fedesarrollo.org.co/handle/11445/3280 . 
159 Decree No.  410 of 27  March  1971.  WT/TPR/S/372/Rev.1 • Colombia  
 
- 156 - 
 
  being provided by foreign ships were rare between 2012 and 2017. Foreign ships pro vided cabotage 
services above all for movement of containers between the ports of Buenaventura and Cartagena.  
4.162.   There are no restrictions on foreign holdings in companies in the sector. To provide 
international maritime transport services, foreign vessels mu st have a shipping agent in Colombia 
with a commercial operating licence obtained from DIMAR. The captain, officers and 80% of the rest 
of the crew on board vessels flying the Colombian flag mus t be Colombian. Citizens of CAN  member 
States enjoy national t reatment.160 
4.163.   Provision of maritime transport services, whether international or cabotage, freight and/or 
passenger, with Colombian or foreign vessels, is authorized by DIMAR. According to the type of 
service, either an approval and an operating permit (scheduled service) or an authorization 
(non-scheduled service) are required. The approval and operating permit for scheduled services are 
granted for a specific type of transport, whether international or cabotage. Thus, a Colombian 
shipping line transpor ting international freight cannot simultaneously provide cabotage services, 
unless there are no Colombian lines approved for the cabotage transport. The approval and the 
operating permit are granted for an indefinite period and are not transferable.161 The a uthorization 
to provide non -scheduled services is granted for the period covering provision of the service and is 
not transferable . 
4.164.   Foreign ships can register in Colombia and in so doing acquire Colombian nationality. The 
vessel can only be registered by t he owner, who must be Colombian. Registration is obtained through 
the certificate of registration issued by DIMAR, which proves that the vessel is listed in the port 
authority register. A temporary registration may be granted (free of charge) while the per manent 
registration procedure is being completed; the cost of permanent registration depends on the 
vessel's tonnage. The fee for registering a vessel under the Colombian flag is exempt from VAT.162 
Lease and charter contracts must be registered with DIMAR.  
4.165.   Shipping lines (both Colombian and foreign) have to register their tariffs with DIMAR. DIMAR 
is entitled, ex officio  or at the request of a third party, to object and modify the tariffs.163 The 
authorities point out that DIMAR has not requested any revision of tariffs during the period since 
2012.  
4.166.   The authorities report that Colombian shipping lines did not participate in maritime 
conferences during the period under review. The fuel used by ships operating international maritime 
routes is not subject to the n ational carbon tax (Section 3.1.4).164 Ship repair and shipbuilding 
activities continue to be exempt from VAT.  
4.4.3.2.2   Ports  
4.167.   Law No.  1 of 10  January  1991 regulates the concession regime for the construction, 
maintenance and operation of ports, docks and terminals in  Colombia. The provision of port  services 
is regulated by Single Regulatory Decree No.  1.070 of 26  May 2015, which is a compilation of 
Decrees No.  1.423 of 1989 and No.  3.703 of 2007.  
4.168.   MinTransporte draws up the Port Expansion Plan which sets the guidelines  and strategies for 
the development of port infrastructure, including the methodologies for calculating the 
considerations to be paid for port concessions and the tariffs collected by port companies. The plan 
has to be approved by the National Economic and  Social Policy Council (CONPES) and then adopted 
                                                
160 Single Regulatory Decree No.  1.079 of 2015, and online information from DIMAR, viewed at: 
https://www.dimar.mil.co/content/agencias -mar%C3  per centADtimas  and 
https://www.dimar.mil.co/content/clases -de-empresas -de-explotaci%C3%B3n -comercial . 
161 Single Regulatory Decree No.  1.079 of 26  May 2015.  
162 Article 1.458 of the Commercial Code, Law No.  730 of 31  December  2001, and online information 
from DIMAR, viewed at:  https://www.dimar.mil.co/content/certificado -de-matricula -definitiva -o-provisional -de-
naves -y-artefactos -navales . 
163 Single Reg ulatory Decree No.  1.079 of 26  May 2015.  
164 Communication of 10  February  2017 from the DIAN. Viewed at: 
http://www.dian.gov.co/descargas/EscritosComunicados/2017/Concepto_Impuesto_al_Carbono_Ley_1819_de
_2016.pdf . WT/TPR/S/372/Rev.1 • Colombia  
 
- 157 - 
 
 
 by decree. The last plan was adopted in 2013.165 According to the authorities, MinTransporte will be 
drawing up the new Port Expansion Plan in 2018.  
4.169.   Colombia has maritime port areas in: Barranquilla, Buenavent ura, Cartagena, La Guajira, 
Morrosquillo Gulf, San Andrés, Santa Marta and Ciénaga, Turbo, Tumaco and Urabá.  
4.170.   A concession is required to engage in port activities in Colombia. As per Law No.  1 of 1991, 
only port companies, whether public, private or semi -public, may apply for a port concession. Port 
concessions are granted by the ANI, either following an application from a party or through a public 
bidding process ("informal bidding"). With a view to strengthening port activities, the procedures for 
grantin g concessions were streamlined in 2014, and now take only five months instead of twelve.166 
The concession contract has an initial duration of up to 20 years, and may be renewed for a similar 
or longer period of time.167 As at 2017, con cessions had been grante d to 59  private port companies 
and seven regional port companies. The latter are semi -public companies in which the State holds 
between 3.5% and 15% of the capital (in any event, the State's share may not exceed 30%).168 
4.171.   Concession holders pay consideration to the State for the exclusive and temporary use of 
public port areas. The methodology for calculating the amount of the consideration is laid down and 
adjusted in the Port Expansion Plans. In 2013, a new methodology was introduced, better tailored 
to the workings of the port business, making the sector both more competitive and more attractive. 
Under this new methodology, port companies will pay additional consideration when they need a 
longer time -frame than that required to amortize their investment.169 The resulting amounts go to 
the National Highways Institute (INVIAS) to finance the construction and maintenance of access 
roads and canals leading to port areas.  
4.172.   Port companies charge vessels for using docks and loading/unloading and storage facilities, 
as well as for various services (refuelling or water supply, for example). Private -sector port 
companies freely set their tariffs, which must be communicated to the Delegated Supervisory 
Authority for Ports. For public -sector port companies, a controlled free  pricing regime remains in 
place, under which tariffs are set freely, but must be calculated within the guidelines laid down by 
the Ports and Transport Supervisory Authority (Supertransporte, or SPT) on the basis of the 
Port Expansion Plans. In 2017, this methodology continued to be used together with the tariff 
requirements laid down in Resolution No.  723 of 1993.170 Thereunder, tariffs have to be oriented to 
the "competitive tariff" calculated for each port area. Tariffs exceeding the "competitive tariff" b y 
25% or more are not accepted. The tariffs are communicated to the Delegated Supervisory Authority 
for Ports which approves and publishes them, or requests that they be adjusted. The tariffs are 
revised every two years.171 
4.173.   Port companies may supply port ser vices directly or contract them out to port operators. 
The provision of port services requires a commercial operating licence, issued by DIMAR. Harbour 
pilots must have a licence. Vessels under foreign flags may not provide port services in Colombian 
ports, except dredging. DIMAR will authorize the use of foreign flag vessels to provide port services 
when there are no Colombian ships available for the purpose. The authorization is given to the 
                                                
165 Decree No.  1.099 of 28  May 2013 
166 See Decree No.  474 of 17  March  2015 abrogating Decree No.  4.735 of 2  December  2008, and online 
information from  MinTransporte, viewed at: 
https://www.mintransporte.gov.co/Publicaciones/gobierno_nacional_presento_decreto_ para_agilizar_tramites_
de_concesiones_portuarias . 
167 Law No.  1 of 10  January  1991 and Decree No.  474 of 17  March  2015.  
168 Information provided by the authorities, and online information from MinCIT, viewed at: 
http://www.mincit.gov.co/publicaciones/14803/normatividad_servicios_de_transporte . 
169 Decree No.  1.099 of 28  May 2013; CONPES Document 3.744 of 15  April 2013 and its Annex 2 
(viewed at: http://portalterritorial.gov.co/apcafiles/40743db9e8588852c19cb285e420affe/3744.pdf  and at: 
http://www.supertransporte.gov.co/documentos/2014/delegada%20puertos/conpes/Anexo%202%20Conpes%
203744%20de%202013.pdf ). 
170 CONPES Document 3.744 of 15  April 2013 and Resolution No.  723 of the former General Port 
Supervisory Authority of 13  July 1993, as amended by Resolutions N o. 1.261 of 1993 and No.  884 of 1996.  
171 The tariffs may be viewed at: http://www.supertransporte.gov.co/index.php/la -
entidad/delegadas/superintendencia -delegada -de-puertos/139 -tarifas -portuarias . Articles 19 -20 of Law No. 1 
of 10 January  1991, Resolution No.  426 of the former General Port Supervisory Authority of 10  July 1997 and 
Resolution No.  723 of the former General Port Supervisory Authority of 13  July 1993, as amended by 
Resolutions No.  1.261 of 1993 and No.  884 o f 1996.  WT/TPR/S/372/Rev.1 • Colombia  
 
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  foreign vessel for six months and may be extended up to a maximu m of one year.172 Tariffs for port 
services are set freely, but are monitored by Supertransporte.173 Subsidies may not be granted to 
regional port companies.174 
4.174.   In 2016, port traffic in Colombia stood at 199.5  million tonnes (Table 4.20). As regards the 
type of cargo carried, the leading products are still coal in bulk (45% of the total) and liquid bulk 
(29%), primarily petroleum, followed by container freight (16%).  
Table 4.20 Traffic indicators in maritime ports, 2 012-2016  
 2012  2013  2014  2015  2016  
External trade (millions of tonnes)  157.8  165.6  168.7  175.3  180.9  
Year-on-year variation (%)  2.5 4.9 1.9 3.9 3.2 
Transit (millions of tonnes)  17.5 16.0 18.3 19.6 16.8 
Cabotage (millions of tonnes)  0.4 0.8 0.6 1.0 1.8 
Source:  Statistics from Supertransporte. Viewed at: http://www.supertransporte.gov .co/index.php/la -
entidad/delegadas/superintendencia -delegada -de-puertos/163 -intermediarios -comercio -exterior -
movimientos -carga . 
4.4.4   Tourism  
4.175.   The tourism sector is governed by Law No.  300 of 26  July 1996 (General Tourism Law) and 
amendments thereto, and by Singl e Regulatory Decree No.  1.074 of 26  May 2015, in which various 
decrees governing the provision of tourism services are compiled (Decrees No.  502 of 1997, 
No. 1.076 of 1997, No.  1.036 of 2007 and No.  229 of 2017).  
4.176.   MinCIT  draws up the policy for the tourism sector, advised by the Advisory Council for the 
Tourism Industry. For its part, the Higher Tourism Council draws up the programmes to implement 
the tourism policy. Both councils were established in 2013.175 The policy objectives for the tourism 
sector are se t out in the (four -year) Tourism Sector Plans (PST). The current PST 2014 -2018 
(Tourism for Peace Building) proposes to enhance competitiveness through various initiatives: 
creating new tourist destinations and products and consolidating existing ones as w ell as promoting 
them on the domestic and international market; optimizing and developing the tourism 
infrastructure; and supporting tourism service providers in obtaining certification showing that they 
meet technical quality standards for tourism. There is also a drive to improve cooperation between 
the State and local authorities for implementation of the sector policy.176 
4.177.   Foreigners may provide tourism services in Colombia. To provide tourism services, they have 
to be listed in the National Tourism Regist er (RNT), which is administered by the chambers of 
commerce. To register, providers have to go through the webpage of the chamber of commerce of 
the department where the service will be provided.177 The registration certificate is issued within 
15 days (as a gainst 30 days prior to 2017) and has to be renewed every year.178 Renewal may be 
contingent on fulfilling certain conditions: for example, the authorities specify that accommodation 
establishments need to meet the sector's technical standards. Tourism servi ce providers in the 
department of the San Andrés, Providencia and Santa Catalina Archipelago are not covered by the 
                                                
172 Articles 1 and 32 of Law No.  1 of 10  January  1991, Single Regulatory Decree No.  1.070 of 
26 May 2015, and online information from DIMAR, viewed at: https://www.dimar.mil.co/content/clases -de-
empresas -de-explotaci%C3%B3n -comercial . 
173 Article 20 of Law No.  1 of 10  January  1991 and SIC (no  date), Estudios de Mercado: Sector Portuario 
Colombiano e incidencia de las Políticas Públicas en la SPRBUN. Viewed at: 
http://www.sic.gov.co/recursos_user/documentos/promocion_competencia/Estudios_Economicos/Estudios_ Eco
nomicos/Estudios_Mercado_Puertos.pdf . 
174 Online information from MinCIT, viewed at: 
http://www.mincit.gov.co/publicaciones/14803/normatividad_servicios_de_t ransporte . 
175 Decree No.  1.591 of 30  July 2013 and Decree No.  1.873 of 20  September  2013.  
176 The Tourism Sector Plan may be viewed at: 
http://www.mi ncit.gov.co/minturismo/publicaciones/30661/plan_sectorial_de_turismo_2014_ -_2018 . 
177 Online information, viewed at : http://rnt.confecamaras.co . 
178 Single Regulatory Decree No.  1074 of 26  May 2016, as amended by Dec ree No.  229 of 
14 February  2017.  WT/TPR/S/372/Rev.1 • Colombia  
 
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 RNT, but have to register with the Tourism Secretariat of the corresponding department to obtain a 
permit, in lieu of the registration certi ficate.179 
4.178.   The parafiscal contribution for the promotion of tourism and the tourism tax serve to finance 
infrastructure, competitiveness and promotion projects in the sector carried out by the National 
Tourism Fund (FONTUR). All tourism service providers, as  well as other providers of services related 
to tourism (for example, air transport companies and airport concession holders), pay the parafiscal 
contribution for promoting tourism, at a rate of 0.25% of their income, except for bars and 
restaurants (0.15% ) and air transport (US$1 per international passenger).180 The tourism tax is 
collected from foreign passengers arriving on scheduled flights to Colombia; certain categories of 
passenger (civil servants, students or seniors aged over 65) and passengers on no n-scheduled flights 
are exempt. The amount of the tourism tax is set at US$15 (unchanged since 2012).181 
4.179.   During the review period, fiscal incentives continued to be used to encourage development 
of the sector. For example, revenues from services provided in new, renovated or expanded hotels 
are exempt (for 30 years) from income tax.182 Likewise, the income tax rate will be 9% for revenues 
from services provided in new, renovated or expanded hotels located in municipalities of fewer than 
200,000 inhabitants; thi s 9% tax rate will apply for a period of 20 years.183 Revenues from 
ecotourism services are exempt (for 20 years) from income tax.184 Since 2013, the sale of certain 
packages of tourist services has been exempted from VAT .185 Providers of tourism services can also 
benefit from the Plan Vallejo for services, which allows capital goods to be imported with a total or 
partial tariff waiver and deferred payment of VAT, subject to their exporting a minimum amount of 
services . Moreov er, companies in the sector may apply for loans of up to Col$700  million through 
the line of credit (Col$45  billion) made available to the sector by Bancoldex through the commercial 
banking system.186 According to the authorities, 92% of the credit line had been utilized at end 
2017, chiefly benefiting small  enterprises in the sector; 286  projects had been carried out.  
4.180.   The tourism sector generated income of US$4,307  million as at the third quarter of 2017. 
The number of visitors grew from 3.5 to 5.8  million b etween 2012 and 2017 (Table 4.21), which 
according to the authorities places Colombia among the five most visited countries in the Americas. 
The increase in the number of visitors can be explained by better air connections and the efforts 
deployed to promo te and diversify the tourism offering.  
Table 4.21 Tourism sector indicators, 2012 -2017  
 2012  2013  2014  2015  2016  2017  
Visitors (millions)  3.5 3.7 4.2 4.4 5.1 5.8 
Foreign exchange earnings (US$  million)  4,364  4,758  4,887  5,236  5,835  4,307a 
a Third quarter.  
Source:  Information provided by the authorities.
                                                
179 Single Regulatory Decree No.  1.074 of 26  May 2016, and Law No.  915 of 21  October  2004.  
180 Single Regulatory Decree No.  1.074 of 26  May 2016, Law No.  1.558 of 10  July 2012, and online 
information from FONTUR, viewed at: http://fontur.com.co/contribucion -parafiscal . 
181 Single Regulatory Decree No.  1074 of 26  May 2016. 
182 Hotels on which the works in question were carried out between 1  January  2003 and 
31 December  2017. Decree No.  2.755 of 30  September  2003, amended by Decrees No.  920 of 17  March  2009 
and No.  463 of 16  March  2016.  
183 Hotels for which the works in question a re carried out between 2017 and 2027. Article 100 of Law 
No. 1.819 of 29  December  2016.  
184 Ecotourism services provided between 2003 and 2023. Decree No.  2.755 of 30  September  2003, 
amended by Decrees No.  920 of 17  March  2009 and No.  463 of 16  March  2016.  
185 Decree No.  297 of 23  February  2016 abrogating Decree No.  2.646 of 20  November  2013, and online 
information from MinCIT, viewed at: 
http://www.minc it.gov.co/publicaciones/35871/turistas_extranjeros_no_pagaran_iva_en_colombia . 
186 Online information from MinCIT, viewed at: 
http://www.mincit.gov.co/publicaciones/35940/en_2016_linea_de_credito_de_bancoldex_sigue_a_disposicion_
de_empresas_de_turismo ; and online information from Bancoldex, viewed at: https://bancoldex.com/Pagina -
Principal/Crditos -para-empresas -de-turismo.aspx . WT/TPR/S/372/Rev.1 • Colombia  
 
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  5  APPENDIX TABLES  
Table A1. 1 Total merchandise exports by HS section, 2012 -2017  
Descrip tion 2012  2013  2014  2015  2016  2017   
(US$ million ) 
Total exports  (f.o.b.)  60,274 58,822 54,795 35,691 31,045 37,800  
(% of exports ) 
1 - Live animals; animal products  1.0 1.2 0.6 0.8 0.8 0.7 
03. Fish, crustaceans and  molluscs  0.3 0.3 0.3 0.4 0.4 0.3 
02. Meat and edible meat offal  0.1 0.4 0.1 0.1 0.1 0.2 
01. Live animals  0.6 0.5 0.1 0.1 0.2 0.1 
2 - Vegetable products  7.0 7.1 9.0 13.6 15.8 13.7 
09. Coffee, tea, maté and spices  3.3 3.3 4.6 7.2 8.0 6.9 
06. Live trees and other plants; bulbs, roots and the 
like; cut flowers and ornamental foliage  2.1 2.3 2.5 3.7 4.3 3.7 
08. Edible fruit and nuts  1.5 1.4 1.7 2.5 3.3 2.9 
3 - Animal or vegetable fats and oils  0.5 0.5 0.6 1.1 1.2 1.4 
4 - Prepared foodstuffs; beverages, spirits and vinegar; 
tobacco and manufactured tobacco substitutes  2.5 2.4 3.0 3.8 4.0 3.4 
17. Sugars and sugar confectionery  1.3 1.1 1.5 1.7 1.7 1.5 
21. Miscellaneous edible preparations  0.6 0.6 0.6 0.8 0.9 0.8 
5 - Mineral products  65.8 66.8 65.7 53.0 47.7 54.3 
27. Mineral fuels, mineral oils  65.7 66.8 65.6 52.8 47.5 54.1 
6 - Products of the chemical or allied industries  3.5 4.0 4.2 6.2 6.3 5.0 
38. Miscellaneous chemical products  0.6 0.9 0.9 1.5 1.6 1.2 
33. Essential oils and resinoids; perfumery, cosmetic 
or toilet preparations  0.9 1.0 0.9 1.2 1.3 1.2 
30. Pharmaceutical products  0.8 0.8 1.0 1.4 1.4 0.9 
7 - Plastics and articles thereof  2.8 2.9 3.1 4.2 4.3 3.8 
8 - Raw hides and skins, leather, furskins and articles 
thereof; saddlery and harness  0.4 0.5 0.6 0.7 0.6 0.4 
9 - Wood and articles of  wood; wood charcoal  0.1 0.1 0.1 0.1 0.1 0.1 
10 - Pulp of wood or of ot her fibrous cellulosic material ; 
paper and paperboard and articles thereof  0.9 0.8 0.8 1.0 0.9 0.8 
11 - Textiles and textile articles  1.9 1.7 1.6 2.2 2.2 1.8 
62. Articles of apparel and clothing accessories, not 
knitted or crocheted  0.6 0.6 0.6 0.9 0.8 0.7 
61. Articles of apparel and clothing accessories, 
knitted or crocheted  0.5 0.4 0.4 0.5 0.5 0.4 
12 - Footwear, headgear, umbrellas, sun umbrellas, 
walking sticks, seat -sticks, whips, riding -crops and parts 
thereof; prepared feathers and articles made therewith  0.1 0.1 0.1 0.1 0.1 0.1 
13 - Articles of stone, plaster, cement, asbestos, mica 
or similar materials; ceramic products; glass and 
glassware  0.8 0.7 0.8 0.9 1.0 0.8 
14 - Natural or cu ltured pearls, precious or 
semi-precious stones, precious metals  6.1 4.3 3.4 3.7 5.6 5.3 
15 - Base metals and articles of base metal  3.3 2.9 2.8 3.4 3.3 3.1 
72. Iron and steel  1.7 1.4 1.4 1.4 1.3 1.2 
74. Copper and articles thereof  0.6 0.6 0.5 0.6 0.6 0.7 
76. Aluminium and articles thereof  0.3 0.4 0.4 0.6 0.8 0.6 
16 - Machinery and mechanical appliances; electrical 
equipment; parts thereof  1.5 1.6 1.7 2.5 2.8 2.4 
17 - Vehicles, aircraft, vessels and associated transport 
equipment  1.0 1.5 1.1 1.5 1.9 1.6 
87. Vehicles other than railway or tramway 
rolling -stock, and parts and accessories thereof  1.0 1.5 1.0 1.4 1.8 1.4 
18 - Optical, photographic, cinema tographic, measuring, 
checking and precisio n instruments and apparatus  0.1 0.2 0.2 0.3 0.3 0.2 
19 - Arms and ammunition; parts and accessories 
thereof  0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  0.7 0.7 0.7 0.9 0.8 0.7 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Other 0.0 0.0 0.0 0.0 0.0 0.0 
Sourc e: WTO Secretariat estimates  based on data from the Comtrade database and information provided by 
the authorities for 2017.  
 WT/TPR/S/372/Rev.1 • Colombia  
 
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 Table A1. 2 Total merchandise imports  by HS section, 2012 -2017  
Description  2012  2013  2014  2015  2016  2017   
(US$ million ) 
Total imports (c.i.f.)  58,088 59,381 64,028 54,03
6 44,83
1 46,076 
 
(% of imports ) 
1 - Live animals; animal products  0.7 0.8 1.0 1.0 1.3 1.3 
02. Meat and edible meat offal  0.2 0.3 0.4 0.3 0.4 0.6 
03. Fish and crustaceans, molluscs and other aquatic 
invertebrates  0.3 0.4 0.4 0.4 0.5 0.4 
04. Dairy produce; birds' eggs; natural honey; edible 
products of animal origin  0.2 0.1 0.2 0.2 0.3 0.2 
2 - Vegetable products  4.8 4.5 4.0 4.5 5.3 5.1 
10. Cereals  3.2 3.1 2.6 3.1 3.5 3.3 
12. Oil seeds and oleaginous fruits; miscellaneous grains, 
seeds and fruit; industrial or medicinal plants  0.4 0.5 0.5 0.5 0.6 0.6 
3 - Animal or vegetable fats and oils  1.1 0.9 0.9 0.9 1.3 1.3 
4 - Prepared foodstuffs; beverages, spirits and vinegar; 
tobacco and manufactured tobacco substitutes  3.8 4.0 3.7 4.2 5.5 5.4 
23. Residues and waste from the food industries  1.3 1.4 1.4 1.4 1.7 1.6 
22. Beverages, spirits and vinegar  0.4 0.5 0.4 0.6 1.0 1.1 
21. Miscellaneous edible preparations  0.5 0.5 0.5 0.6 0.8 0.8 
5 - Mineral products  10.1 11.1 12.2 10.1 9.2 8.6 
27. Mineral fuels, mineral oils and products of their 
distillation  9.7 10.8 11.8 9.5 8.6 8.1 
6 - Products of the chemical or allied industries  13.7 14.0 13.4 14.9 16.0 16.4 
30. Pharmaceutical products  3.6 3.9 3.7 4.3 4.7 4.8 
29. Organic chemicals  3.8 4.0 3.7 3.8 4.3 4.4 
38. Miscellaneous chemical products  1.6 1.7 1.7 1.9 2.0 2.0 
31. Fertili zers 1.5 1.2 1.2 1.5 1.3 1.5 
33. Essential oils and resinoids; perfumery, cosmetic or 
toilet preparations  1.0 1.0 1.0 1.1 1.3 1.2 
7 - Plastics and articles thereof  6.1 6.0 6.0 6.2 6.6 6.6 
39. Plastics and articles thereof  4.0 4.1 4.2 4.4 4.7 4.6 
40. Rubber and articles thereof  2.1 1.9 1.8 1.8 1.9 2.0 
8 - Raw hides  and skins, leather, furskins and articles 
thereof; saddlery and harness  0.3 0.3 0.3 0.3 0.3 0.3 
42. Articles of leather; saddlery and harness; travel 
goods, handbags and similar containers  0.3 0.3 0.3 0.3 0.3 0.3 
9 - Wood and articles of wood; wood charcoal  0.4 0.4 0.4 0.4 0.5 0.5 
10 - Pulp of wood or of other fibrous cellulosic material; 
paper and paperboard and articles thereof  1.7 1.7 1.6 1.6 1.8 1.8 
48. Paper and paperboard; articles of paper pulp, of 
paper or of paperboard  1.2 1.2 1.1 1.1 1.2 1.3 
11 - Textiles and textile articles  4.0 3.9 3.9 3.9 4.2 4.1 
52. Cotton  0.9 0.8 0.8 0.8 0.9 0.8 
62. Articles of apparel and clothing accessories, not 
knitted or crocheted  0.6 0.7 0.6 0.6 0.6 0.7 
61. Articles of apparel and clothing accessories, knitted 
or crocheted  0.6 0.6 0.6 0.6 0.5 0.6 
55. Man-made staple fibres  0.5 0.5 0.4 0.5 0.6 0.5 
12 - Footwear, headgear, umbrellas, sun umbrellas, 
walking sticks, seat -sticks, whips, riding -crops and parts 
thereof; prepared feathers and articles made therewith  1.1 0.9 0.9 0.9 0.9 0.9 
64. Footwear, gaiters and the like; parts of such articles  0.9 0.8 0.8 0.7 0.8 0.8 
13 - Articles of stone, plaster, cement, asbestos, mica or 
similar materials; ceramic products; glass and glassware  1.1 1.1 1.1 1.1 1.2 1.1 
14 - Natural or cultured pearls, precious or semi -precious 
stones, precious metals  0.1 0.1 0.2 0.1 0.1 0.2 
15 - Base metals and articles of base metal  7.9 7.2 7.3 6.9 6.7 7.4 
72. Iron and steel  3.2 2.9 3.1 3.0 2.8 2.9 
73. Articles of iron or steel  2.4 2.0 2.0 1.7 1.4 1.8 
76. Aluminium and articles thereof  0.6 0.6 0.7 0.7 0.8 0.9 
74. Copper and articles thereof  0.7 0.7 0.6 0.6 0.6 0.6 
16 - Machinery and mechanical appliances; electrical 
equipment; parts thereof  23.4 23.4 23.2 23.2 21.9 22.7 
84. Nuclear reactors, boilers, machinery and mechanical 
appliances  14.0 13.3 12.8 12.8 11.7 11.9 
85. Electrical machinery and equipment and parts 
thereof; sound recorders and reproducers  9.4 10.1 10.4 10.3 10.2 10.8 
17 - Vehicles, aircraft, vessels and associated transport 
equipment  14.1 13.7 13.9 13.5 10.8 10.4 
87. Vehicles other than railway or tramway rolling -stock, 
and parts and accessories thereof  11.1 9.1 9.7 7.8 8.4 7.9 
88. Aircraft, spacecraft, and parts thereof  2.2 3.9 3.7 4.8 2.1 2.2 
18 - Optical, photographic, cinematographic, measuring, 
checking and precision instruments and apparatus  2.9 3.0 3.1 3.2 3.3 3.1 WT/TPR/S/372/Rev.1 • Colombia  
 
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  Description  2012  2013  2014  2015  2016  2017  
19 - Arms and ammunition; parts and accessories thereof  0.1 0.1 0.2 0.1 0.1 0.1 
20 - Miscellaneous manufactured articles  1.6 1.6 1.6 1.6 1.7 1.7 
94. Furniture; bedding, mattresses, mattress supports, 
cushions and similar stuffed furnishings; lamps  
and lighting fittings, not elsewhere specified or included  0.7 0.7 0.7 0.7 0.7 0.7 
95. Toys, games and sports requisites; parts and 
accessories thereof  0.6 0.6 0.6 0.6 0.6 0.6 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Other  1.0 1.1 1.0 1.1 1.1 0.9 
Source:  WTO Secretariat estimates  based on data from the Comtrade database and information provided by  
the authorities for 2017 . 
 WT/TPR/S/372/Rev.1 • Colombia  
 
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 Table A1. 3 Total merchandise exports by trading partner, 2012 -2017  
Description  2012  2013  2014  2015  2016  2017   
(US$ million ) 
Total exports (f.o.b.)  60,274 58,822 54,795 35,691 31,045 37,800  
(% of exports ) 
America  68.5 63.7 57.5 63.6 65.5 65.8 
United States  36.9 31.8 26.4 28.2 32.9 29.1 
Other America  31.7 31.9 31.1 35.4 32.6 36.7 
Panama  4.8 5.5 6.6 6.7 6.2 7.2 
Mexico 1.4 1.5 1.7 2.6 3.0 4.1 
Ecuador  3.2 3.4 3.4 4.0 3.9 3.9 
Brazil 2.1 2.7 3.0 3.3 3.2 3.6 
Peru 2.6 2.2 2.2 3.2 3.4 2.9 
Chile 3.6 2.7 1.8 2.1 2.2 2.7 
Bahamas  0.9 1.0 1.5 1.9 1.0 2.1 
Saint Lucia  0.0 0.1 0.4 0.5 0.2 1.6 
Canada  0.8 0.7 1.2 1.2 1.2 1.4 
Dominican Republic  1.1 0.6 0.5 0.7 0.9 0.9 
Venezuela, Bolivarian Republic of  4.2 3.8 3.6 3.0 2.0 0.8 
Guatemala  1.0 1.1 0.5 0.6 1.0 0.8 
Argentina  0.5 0.7 0.4 0.4 0.6 0.7 
Trinidad and To bago 0.9 0.8 0.3 0.5 0.3 0.7 
Aruba, Netherlands with respect to  1.7 2.9 2.1 2.4 1.1 0.7 
Europe  17.7 17.7 19.8 20.3 20.4 19.7 
EU (28) 15.2 15.8 17.2 16.9 16.6 14.9 
Netherlands  4.2 3.9 3.9 4.2 3.9 4.5 
Spain  4.9 4.9 6.0 4.4 3.7 2.6 
Belgium  0.8 0.8 0.8 1.3 1.5 1.3 
Italy 0.8 0.8 1.8 1.4 1.4 1.3 
Germany  0.7 1.3 1.2 1.4 1.5 1.3 
EFTA  1.2 0.8 1.0 1.3 1.4 1.1 
Switzerland  1.2 0.8 0.9 1.2 1.2 0.9 
Other Europe  1.3 1.1 1.6 2.1 2.5 3.7 
Turkey  1.3 1.1 1.6 2.1 2.5 3.7 
Commonwealth of Independent States (CIS)  0.2 0.2 0.2 0.3 0.3 0.3 
Russian Federation  0.2 0.2 0.2 0.3 0.2 0.2 
Africa  0.8 0.3 0.7 0.9 0.9 0.4 
Côte d'Ivoire  0.2 0.0 0.2 0.3 0.3 0.1 
Morocco  0.0 0.0 0.0 0.0 0.0 0.1 
South Africa  0.2 0.1 0.3 0.4 0.1 0.1 
Middle East  1.0 0.9 1.3 1.1 1.3 1.2 
Israel  0.9 0.7 1.0 0.8 0.9 0.8 
Asia 11.2 15.6 18.1 12.0 8.5 11.0 
China  5.5 8.7 10.5 6.3 3.6 5.3 
Japan 0.6 0.7 0.8 1.5 1.4 1.5 
Other Asia  5.1 6.2 6.9 4.2 3.5 4.2 
Korea, Republic of  0.6 0.4 0.9 0.6 1.3 1.2 
Singapore  0.7 0.1 0.4 1.0 0.2 0.9 
India 2.3 5.1 5.0 1.5 0.7 0.7 
Malaysia 0.4 0.2 0.0 0.3 0.3 0.4 
Chinese Taipei  0.1 0.1 0.1 0.2 0.1 0.2 
Hong Kong, China  0.7 0.1 0.1 0.2 0.3 0.2 
Australia  0.1 0.1 0.1 0.1 0.2 0.2 
Other  0.5 1.6 2.3 1.8 3.2 1.6 
Free zones  0.4 0.1 0.1 0.7 1.7 1.5 
Other  0.0 1.5 2.2 1.2 0.8 0.2 
Source: WTO Secretariat estimates  based on data from the Comtrade database and information provided by  
the authorities for 2017 .  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Table A1. 4 Total merchandise import s by trading partner, 2012 -2017  
Description  2012  2013  2014  2015  2016  2017   
(US$ million ) 
Total imports (c.i.f.)  58,088 59,381 64,028 54,036 44,831 46,076  
(% of imports ) 
America  56.6 55.4 53.5 49.7 49.7 49.0 
United States  24.3 27.7 28.5 28.8 26.7 26.3 
Other America  32.3 27.7 25.0 20.9 23.0 22.8 
Mexico 11.0 9.3 8.2 7.1 7.6 7.5 
Brazil 4.8 4.4 3.9 3.9 4.7 5.0 
Canada  1.9 1.7 1.8 1.6 1.7 1.7 
Ecuador  1.8 1.5 1.4 1.4 1.8 1.6 
Chile 1.6 1.5 1.5 1.4 1.6 1.5 
Peru 1.6 1.5 1.9 1.7 1.5 1.4 
Argentina  4.0 2.9 1.6 0.9 1.1 1.2 
Colombia  2.2 1.6 1.7 0.0 0.0 0.8 
Bolivia, Plurinational State of  0.5 0.9 0.9 0.8 1.2 0.8 
Venezuela, Bolivarian Republic of  0.9 0.7 0.7 0.5 0.4 0.5 
Europe  13.8 14.6 14.9 16.6 15.4 16.4 
EU (28) 12.6 13.4 13.7 15.3 14.0 14.9 
Germany  3.9 3.7 4.0 4.2 3.8 4.1 
Spain  1.3 1.6 1.5 1.7 2.0 2.1 
France  2.0 2.4 2.9 3.6 1.8 2.1 
Italy 1.6 1.7 1.5 1.5 1.7 1.6 
United Kingdom  1.0 0.9 0.9 1.0 0.9 1.0 
EFTA  0.9 0.9 0.9 0.9 0.9 1.0 
Switzerland  0.9 0.9 0.8 0.8 0.9 0.9 
Other Europe  0.3 0.3 0.3 0.5 0.5 0.5 
Turkey  0.3 0.3 0.3 0.4 0.5 0.5 
Commonwealth of Independent States (CIS)  0.9 0.6 0.7 0.8 0.7 0.8 
Russian Federation  0.7 0.5 0.6 0.7 0.6 0.6 
Ukraine  0.2 0.1 0.1 0.1 0.1 0.1 
Africa  0.3 0.3 0.2 0.2 0.2 0.2 
Morocco  0.1 0.1 0.1 0.1 0.1 0.1 
South Africa  0.1 0.1 0.1 0.1 0.1 0.1 
Middle East  0.5 0.5 0.7 0.5 0.5 0.5 
Israel  0.3 0.4 0.5 0.3 0.3 0.3 
Saudi Arabia , Kingdom of  0.1 0.1 0.1 0.1 0.1 0.1 
Asia 27.0 27.5 29.0 29.0 30.1 30.1 
China  16.5 17.5 18.4 18.6 19.3 19.0 
Japan 2.8 2.5 2.4 2.3 2.5 2.7 
Other Asia  7.6 7.6 8.2 8.2 8.3 8.4 
India 1.9 1.9 2.1 2.2 2.1 2.3 
Korea, Republic of  2.2 2.2 2.3 2.1 2.0 1.7 
Viet Nam  0.4 0.5 0.7 0.9 1.1 1.2 
Chinese Taipei  1.0 0.9 1.0 1.0 1.0 0.9 
Thailand  0.6 0.5 0.5 0.6 0.6 0.6 
Indonesia  0.4 0.4 0.4 0.4 0.4 0.4 
Malaysia 0.4 0.3 0.4 0.3 0.4 0.4 
Singapore  0.2 0.2 0.2 0.2 0.2 0.2 
Other  1.0 1.0 1.0 3.0 3.4 3.0 
Free zones  1.0 0.1 0.2 1.3 2.0 3.0 
Other  0.0 0.8 0.8 1.7 1.3 0.0 
Source:  WTO Secretariat est imates  based on data from the Comtrade database and information provided by  
the authorities for 2017 .  WT/TPR/S/372/Rev.1 • Colombia  
 
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 Table A2. 1 Notifications under the WTO Agreements, 1 January  2012 to  
31 December  2017  
Agreement  Description  Frequency  WTO document (most recent if 
submitted regularly )  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2  Laws and regulations or amendments 
thereto  Ad hoc  IP/N/1/COL/8,  01/04/2015  
IP/N/1/COL/P/5, 01/12/2014  
IP/N/1/COL/7, 31/10/2014  
IP/N/1/COL/6, 11/04/2014  
IP/N/1/COL/C/8, 11/04/2014  
IP/N/1/COL/E/4, 11/04/2014  
IP/N/1/COL/C/7, 16/01/2014  
IP/N/1/COL/C/6, 19/10/2014  
IP/N/1/COL/I/4, 18/09/2012  
IP/N/1/COL/T/2, 18/09/2012  
IP/N/1/COL/U/1, 18/09/2012  
IP/N/1/COL/U/2, 18/09/2012  
IP/N/1/COL/5, 14/09/2012  
IP/N/1/COL/4, 14/09/2012  
IP/N/1/COL/T/1, 05/04/2012  
IP/N/1/COL/3, 30/01/2012  
IP/N/1/COL/C/5, 30/01/2012  
Agreement on Trade Facilitation  (WT/L/911 replaced by  WT/L/931)  
Article  15 Commitments designated under Category 
A Once only  WT/PCTF/N/COL/1, 13/06/2014  
Agreement on Agriculture  
Articles 10 and 18.2 
ES:1 and ES: 2 Export subsidies  On an annual 
basis G/AG/N/COL/55, 21/11/2017  
Article 18.2 DS: 1 Domestic support  On an annual 
basis G/AG/N/COL/54, 09/11/2017  
Article 18.2 MA: 2 Tariff and other quota c ommitments  On an annual 
basis  G/AG/N/COL/50, 04/05/2016  
Articles 5.7 and 18.2 
MA:5 Special safeguard provisions  On an annual 
basis  G/AG/N/COL/53, 07/11/2017  
General Agreement on Trade in Services  
Article III: 3 New, or any changes to, existing laws, 
regulations or administrative guidelines  Ad hoc  S/C/N/700, 25/06/2013  
S/C/N/699, 25/06/2013  
Article V:7(a) Economic integration agreement  Ad hoc  S/C/N/876, 03/03/2017  
S/C/N/871, 03/11/2016  
S/C/N/870, 01/11/2016  
S/C/N/868, 07/10/2016  
S/C/N/681/Rev.1, 21/03/2013  
S/C/N/646, 03/09/2012  
S/C/N/643, 10/05/2012  
Agreement on Implementation of Article VI  of the GATT 1994 (anti -dumping ) 
Article  16.4 Anti-dumping actions (taken durin g the 
preceding six months ) Semi-annual  G/ADP/N/300/COL, 13/09/2017  
Article  18.5  Laws/regulations and changes thereto, 
including changes in the administration of 
such laws  Ad hoc  G/ADP/N/1/COL/4, 12/10/2015  
Agreement on Implementation of Article VII of t he GATT 1994 (customs valuation ) 
Article  22.2 Changes in laws/regulations and 
administrative arrangements  Ad hoc  G/VAL/N/1/COL/3, 19/11/2014  
G/VAL/N/1/COL/2, 07/10/2014  
Decision  A.4 Determination of customs value  of carrier 
media bearing software for data processing 
equipment  Once only  G/VAL/N/3/COL/1, 07/10/2014  
 Check -list of issues  Once only  G/VAL/N/2/COL/2, 07/10/2014  
GATT 1994     
Article XVII:4( a) State trading activities  On an annual 
basis  G/STR/N/16/COL, 01/06/2017  
Article XXIV:7( a)  Formation of a free trade area  Ad hoc  WT/REG380/N/1, 03/03/2017  
WT/REG377/N/1, 03/11/2016  
WT/REG376/N/1, 01/11/2016  
WT/REG375/N/1, 07/10/2016  
WT/REG333/N/1/Rev.1, 
21/03/2013  
WT/REG316/N/1, 03/09/2012  
WT/REG314/N/1, 10/05/2012  
Article XXVIII: 5 Modification of schedules (reservation of 
the right to modif y schedules for a three -
year period ) On a triennial 
basis G/MA/293, 26/08/2014  
Agreement on Import Licensing Procedures  
Article 5.1, 5.2 and  
5.3  Import licensing procedures or changes 
thereto  Ad hoc  G/LIC/N/2/COL/2, 15/03/2013  
Article  7.3 Replies to the questionnaire on import 
licensing procedures  On an annual 
basis G/LIC/N/3/COL/11, 21/03/2016  WT/TPR/S/372/Rev.1 • Colombia  
 
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  Agreement  Description  Frequency  WTO document (most recent if 
submitted regularly )  
Article 8.2( b)  Changes in laws/regulations and 
administrative arrangements  Ad hoc  G/LIC/N/1/COL/3, 04/10/2013  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex B  Sanitary/phytosanitary regulations  Ad hoc  G/SPS/N/COL/124/Add.5, 
06/03/2012 to  G/SPS/N/COL/275, 
20/11/2017  
Agreement on Rules of Origin  
Article 5 and 
Annex  II, paragraph 
4 Changes in preferential rules of origin; new 
preferential rules of origin  Ad hoc  G/RO/N/152, 21/07/2017  
G/RO/N/94, 09/04/2013  
Article 5 and  
Annex  II, paragraph 
4 (first time ) Existing preferential rules of origin; judicial 
decisions and administrative rulings of 
general application relating to preferential 
rules of origin  Once, 
promptly after  
entry into 
force of the 
WTO 
Agreement  G/RO/N/157, 21/07/2017  
G/RO/N/154, 21/07/2017  
G/RO/N/153, 21/07/2017  
Agreement on Technical Barriers to Trade  
Article  2.10 Technical regulations (urgent)  Ad hoc  G/TBT/N/COL/224, 01/06/2017  
Article  2.9 Technical regulations  Ad hoc  G/TBT/N/COL/167, 13/01/2012 a 
G/TBT/N/COL/228, 13/09/2017  
Articles 2.9 and  5.6 Technical regulations  Ad hoc  G/TBT/N/COL/190, 15/03/2013 a 
G/TBT/N/COL/227, 28/08/2017  
Article  5.6 Conformity assessment procedures  Ad hoc  G/TBT/N/COL/220, 09/06/2016  
G/TBT/N/COL/210, 15/12/2016  
G/TBT/N/COL/209, 09/12/2014  
G/TBT/N/COL/197, 02/0872013  
G/TBT/N/COL/196, 19/07/2013  
G/TBT/N/COL/194, 07/06/2013  
G/TBT/N/COL/193, 22/05/2013  
G/TBT/N/COL/192, 12/04/2013  
Articles to be 
determined  Technical regulations  Ad hoc  G/TBT/N/COL/229, 29/11/2017  
G/TBT/N/COL/223, 21/04/2017  
G/TBT/N/COL/201, 07/02/2014  
G/TBT/N/COL/182, 04/09/2012  
Agreement on Safeguards   
 Conclusion of an investigation without the 
adoption of safeguard  measure s Ad hoc  G/SG/N/9/COL/5, 29/04/2014  
G/SG/N/9/COL/4, 29/04/2014  
Article 12.1( a)  Safeguard measures ( upon initiating an 
investigation ) Ad hoc  G/SG/N/6/COL/7, 04/09/2013  
G/SG/N/6/COL/6, 04/09/2013  
G/SG/N/6/COL/5, 04/09/2013  
G/SG/N/6/COL/4, 29/07/2013  
Article 12.1( b) Safeguard measures  (upon making a 
finding of serious injury or threat thereof ) Ad hoc  G/SG/N/8/COL/1, 28/03/2014  
Article 12.1( c) Safeguard measures  (upon taking a 
decision to apply or extend a safeguard 
measure ) Ad hoc  G/SG/N/10/COL/1, 25/04/2014  
Article  12.4 Safeguard m easures (provisional ) Ad hoc  G/SG/N/7/COL/2, 16/09/2013  
G/SG/N/7/COL/1, 16/09/2013  
Article  7.2 Safeguard measures  (upon the initiation of 
an investigation to consider the extension 
of safeguard measur es) Ad hoc  G/SG/N/14/COL/1, 13/01/2015  
Article  9.1, footnote  
2  Non-application of safeguard measures 
against a product originating in a 
developing country Member  Ad hoc  G/SG/N/11/COL/2, 16/09/2013  
G/SG/N/11/COL/1, 16/09/2013  
Agreement on Subsidies and Countervailing Measures  
Article  25.11  Countervailing duty actions (ta ken in the 
preceding six months ) Semi-annual   G/SCM/N/321, 15/06/2017  
Article  25.12  Authorities competent to initiate and 
conduct investigations , and domestic 
procedures governing the initiation and 
conduct of such investigations . Ad hoc  G/SCM/N/18/Add.41, 22/04/2016  
Sourc e:  WTO Secretariat .  WT/TPR/S/372/Rev.1 • Colombia  
 
- 167 - 
 
 
 Table A2. 2 International investment agreements and agreements to avoid double 
taxation  
International investment agreements  Agreements to avoid double 
taxationa Investment promotion and 
protection agreements  (APPRI)  Regional trade agreements with 
investment clauses  
Brazil Signed  (2015)  Canada  In force  (2011)  Germany   Under negotiation  
China  In force  (2012)  Chile In force  (2009)  Belgium   Under negotiation  
Franc e Signed  (2014)  United States   In force  (2012)  Republic of 
Korea  In force  (2013)  
India In force  (2012)  Israel  Signed  (2013)  United Arab 
Emirates   Signed  (2017)  
Kuwait  Under negotiation  Mexico In force  (1995)  Spain  In force  (2006)  
Peru In force  (2010)  Panama   Signed  (2013)  United States   Under negotiation  
Qatar  Under negotiation   EU  In force  (2013)  France  Signed  (2015)  
Spain  In force  (2007)  Costa Rica  In force  (2016)  Chile In force  (2009)  
Singapore  Signed  (2013)  Pacific Alliance  In force  (2014)  Japan Under negotiation  
Switzerland  In force  (2009)  Andean 
Community   In force  (1988)  Mexico In force  (2012)  
Turkey   Signed  (2014)  Northern 
Triangle   In force (2009 
Guatemala; 2010 
El Salvador and 
Honduras)  Netherlands  Under negotiation  
Panama  Under negotiation  
Portugal  In force  (2013)  
United Kingdom  Under negotiation  
Czech Republic  In force  (2015)  
Switzerland  In force  (2009)  
Andean 
Community   In force  (2004)  
United Arab 
Emirates  Signed  (2017)  Republic of 
Korea  In force  (2016)  Canada  In force  (2012)  
United Kingdom  In force  (2014)  EFTA In force  (2011 
Switzerland and  
Liechtenstein; 2014 
Iceland and Norway ) India In force  (2014)  
a Colombia also has agreements to avoid double taxation in air and maritime transport activities with 
Argentina, Braz il, Chile, France, Germany, Italy, Panama, the United States, and the Bolivarian  
Republic  of Venezuela . 
Sourc e: Information provided by the authorities and  PROCOLOMBIA (2016), Guía Legal para hacer negocios 
en Colombia 2017 , viewed at : 
http://www.inviertaencolombia.com.co/Guia_legal_Espa%C3%B1ol_2017.pdf .  WT/TPR/S/372/Rev.1 • Colombia  
 
- 168 - 
 
  Table A4. 1 Tariff lines subject to preferential quotas , 2017  Trade 
agreement  
Number of 
tariff linesa 
% of tariff 
lines  
HS chapter  
Description  
Number of 
lines per 
chapter  
In-quota tariff  
range (%) 
Out-of-quota 
tariff  
range  (%) 
Canada  38 0.5 02 Meat 29 0 9.2 - 49.8   
05 Products of animal origin, not elsewhere 
specified or included  3 0 21 
  
07 Edible vegetables and certain roots and 
tubers  6 0 18 
Costa Rica  2 0.0 22 Beverages, spirits and vinegar  1 0 10   
23 Residues from the food industries  1 0 15 
European 
Union  85 1.1 02 Meat 2 43.6 80   
04 Milk and cream  22 0 - 
16.7 13.8 - 67.4 
  
05 Products of animal origin, not elsewhere 
specified or included  3 38.2 70 
  
07 Edible vegetables and certain roots and 
tubers  3 0 10 - 15 
  
17 Sugars and sugar confectionery  6 0 15   
18 Cocoa and cocoa preparations  2 7.5 15   
19 Preparations of cereals, flour, starch or milk  5 0 - 
3.3 13.8 - 15 
  
20 Preparations of vegetables, fruit  or nuts 21 0 10 - 15   
21 Miscellaneous edible preparations  20 0 - 
7.5 10 - 15 
  
33 Essential oils and resinoids; perfumery, 
cosmetic or toilet preparations  1 0 5 
EFTA 6 0.1 02 Meat 6 0 11.8 
Korea 6 0.1 04 Milk and cream  6 0 98 
Mexico 27 0.4 02 Meat 2 0 80   
04 Milk and cream  11 0 14.7 - 24.2   
11 Products of the milling industry  2 0 0   
15 Animal or vegetable fats and oils  10 0 4 - 14.4   
19 Preparations of cereals, flour, starch or milk  1 0 0   
22 Beverages, spirits and vinegar  1 0 0 
United 
States  58 0.8 02 Meat 12 0 20+SAFP - 
22.2   
04 Milk and cream  19 0 12 - 19.8 / 
19.8+SAFP    
05 Products of animal origin, not elsewhere 
specified or included  3 0 19.4 
  
07 Edible vegetables and certain roots and 
tubers  9 0 17.9 
  
10 Cereal s 8 0 10 - 80   
15 Animal or vegetable fats and oils  1 0 9.6+SAFP    
16 Preparations of meat, of fish or of 
crustaceans  1 0 20+SAFP  
  
17 Sugars and sugar confectionery  2 0 11.2+SAFP    
19 Preparations of  cereals, flour, starch or milk  3 0 12   
21 Miscellaneous edible preparations  2 0 9.1   
23 Residues from the food industries  4 0 7+SAFP - 
12.5+SAFP  
a Includes complete tariff lines and parts of tariff line s.  
Sourc e: WTO Secretariat estimates based on  data provided by the authorities . 
__________