RESTRICTED  
  
WT/TPR/S/372  
24 April 2018  
(18-2544) Page: 1/169 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
COLOMBIA  
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 is subject to restricted circulation and press emb argo until the end of the 
first session of the meeting of the Trade Policy Review Body on Colombia. This report was drafted 
in Spanish.  
  WT/TPR/S/372 • Colombia  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  9 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  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 policy  ................................ ................................ ................................ ............ 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  ................................ ................................ ............ 27 
1.3.1.2    Services trade  ................................ ................................ ................................ ......27 
1.3.2    Trends and patterns in foreign direct investment  ................................ ......................... 29 
2   TRADE AND INVESTMENT  REGIME  ................................ ................................ ............  31 
2.1   General framework  ................................ ................................ ................................ .....31 
2.2   Trade policy formulation and objectives  ................................ ................................ ......... 34 
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 AND PRACTICES BY MEASURE  ................................ ........................  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 
3.1.4.2    Other taxes  ................................ ................................ ................................ .......... 57 WT/TPR/S/372 • Colombia  
 
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  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  ................................ .......................... 60 
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, restric tions 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  ................................ ................................ ................................ ........ 71 
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 -Expor t 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 
3.3.3.2    Notifications to the WTO  ................................ ................................ ........................ 92 WT/TPR/S/372 • Colombia  
 
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  3.3.3.3    Animal health  ................................ ................................ ................................ .......92 
3.3.3.4   Plant health  ................................ ................................ ................................ .......... 94 
3.3.3.5    Food safety  ................................ ................................ ................................ .......... 96 
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 BY SE CTOR  ................................ ................................ ...................  120  
4.1   Agriculture, forestry and fisheries  ................................ ................................ ...............  120 
4.1.1    General characteristics and policies of the sector  ................................ .......................  120 
4.1.2    Border measures  ................................ ................................ ................................ ... 122 
4.1.3    Domestic support, subsidies and other support schemes  ................................ .............  123 
4.1.4    Financing and insurance  ................................ ................................ .........................  126 
4.1.4.1    Special Line of Credit (LEC)  ................................ ................................ ..................  126 
4.1.4.2    Rural Capitalization Incentive (ICR)  ................................ ................................ ....... 127 
4.1.4.3    Fund for Financing the Agricultural Sector (FINAGRO)  ................................ .............  127 
4.1.4.4    Agricultural Guarantee Fund (FAG)  ................................ ................................ ........  129 
4.1.4.5    Other financing schemes  ................................ ................................ ......................  130 
4.1.4.6    Agricultural insurance  ................................ ................................ ..........................  130 
4.2   Mining and energy  ................................ ................................ ................................ .... 131 
4.2.1    Mining  ................................ ................................ ................................ ..................  133 
4.2.2    Hydrocarbons  ................................ ................................ ................................ ........  134 WT/TPR/S/372 • Colombia  
 
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  4.2.3    Electricity  ................................ ................................ ................................ .............  136 
4.3   Manufacturing  ................................ ................................ ................................ ..........  138 
4.4   Services  ................................ ................................ ................................ ..................  139 
4.4.1    Financial services  ................................ ................................ ................................ ... 139 
4.4.1.1    Regulation and general characteristics  ................................ ................................ ... 139 
4.4.1.2    Banking  ................................ ................................ ................................ .............  144 
4.4.1.3    Insurance  ................................ ................................ ................................ ..........  145 
4.4.1.4    Securities market  ................................ ................................ ................................  147 
4.4.2    Telecommunications  ................................ ................................ ...............................  149 
4.4.3    Transport  ................................ ................................ ................................ ..............  153 
4.4.3.1    Air transport and airports  ................................ ................................ .....................  153 
4.4.3.1.1    Air transport  ................................ ................................ ................................ .... 153 
4.4.3.1.2    Airports ................................ ................................ ................................ ...........  155 
4.4.3.2    Maritime transport and ports  ................................ ................................ ................  156 
4.4.3.2.1    Maritime transport  ................................ ................................ ...........................  156 
4.4.3.2.2    Ports ................................ ................................ ................................ ..............  157 
4.4.4    Tourism  ................................ ................................ ................................ ................  159 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 161  
 
CHARTS  
 
Chart 1.1 Merchandise trade by main products, 2012 and 2017  ................................ ............... 26 
Chart 1.2 Direction of merchandise trade, 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  ................................ ................................ ..........  132 
Chart 4.2 Functioning of Colombia's financial system  ................................ ............................  140 
Chart 4.3 Fixed and mobile services market, 2017 Q3  ................................ ..........................  153 
 
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 
Table 1.6 Inward flows of foreign direct investment to Colombia by country of origin, 
2012-2017Q3  ................................ ................................ ................................ .................... 30 WT/TPR/S/372 • Colombia  
 
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  Table 2.1 Dispute settlement cases involving Colombia, 1  January  2012-
31 December  2017 ................................ ................................ ................................ ............. 36 
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 established in Decree No.  2.218 of 27  December  2017 ...................... 51 
Table 3.4 MFN tariff structure, 2011 and 2017  ................................ ................................ .......52 
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 pref erential 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 applicable 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 enterpris es in Colombia, 2017  ................................ ....................... 80 
Table 3.24 Bancoldex: Credit operations for MSMEs, 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 Notifications 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 State -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 
Table 3.35 Participation in treaties administered by WIPO, 2017  ................................ ............  109 WT/TPR/S/372 • Colombia  
 
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  Table 3.36 Overview of int ellectual property rights, 2017  ................................ ......................  111 
Table 3.37  Applications for legal proceedings before the SIC and outcomes, 2012 -2016 ..........  118 
Table 3.38 Applications for legal proceedings before the DNDA and outcomes, 2013 -2017 ........  118 
Table 4.1 Main agricultural sector indicators, 2012 -2017 ................................ .......................  120 
Table 4.2 Special Line of Credit, conditions for different users  ................................ ...............  126 
Table 4.3 FINAGRO lines of cre dit, conditions by category of user  ................................ ..........  128 
Table 4.4 Guarantees granted by the FAG, 2012 -2016 ................................ ..........................  130 
Table 4.5 Agricultural insurance  ................................ ................................ .........................  131 
Table 4.6 Percentage rate of the Agricultural Insurance Incentives granted to producers, by 
category of producer, 2017  ................................ ................................ ...............................  131 
Table 4.7 Methods of awarding E&P contracts  ................................ ................................ ...... 134 
Table 4.8 Price control in the hydrocarbons sector  ................................ ................................  136 
Table 4.9 Concession contracts in the electricity sector  ................................ .........................  137 
Table 4.10 Regulatory texts governing financial services  ................................ .......................  139 
Table 4.11 Structure of Colombia's financial system, December  2012 and 2017  .......................  140 
Table 4.12 Minimum c apital requirement by type of institution, 2012 -2017 .............................  141 
Table 4.13 Deposit insurance, 2017 ................................ ................................ ....................  143 
Table 4.14 Colombian financial system indicators, December  2012 to 2017  .............................  143 
Table 4.15 Loan portfolio and default rate trends, 2012 -2017 ................................ ................  144 
Table  4.16 Some prudential indicators for the banking sector, 
December  2012-December  2017 ................................ ................................ ........................  145 
Table 4.17 Insurance sector indicators, December  2012 to November  2017 ............................  147 
Table 4.18  Tariff regulation in 2017  ................................ ................................ .................  151 
Table 4.19 Air transport statistics, 2012 -2017 ................................ ................................ ..... 156 
Table 4.20 Traffic indicators in maritime ports, 2012 -2016 ................................ ....................  159 
Table 4.21 Tourism sector indicators, 2012 -2017 ................................ ................................ . 160 
 
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  ................................ ................................ ....................  132 
Box 4.2 Telecommunication sector policy  ................................ ................................ ............  150 
Box 4.3 Air transport sector policy  ................................ ................................ .....................  154 
 
APPENDIX TABLES  
 
Table A1. 1 Total merchandise exports by HS section, 2012 -2017 ................................ ..........  161 
Table A1. 2 Total merchandise imports by HS section, 2012 -2017 ................................ ..........  162 
Table A1. 3 Total merchandise ex ports by trading partner, 2012 -2017 ................................ ... 164 
Table A1. 4 Total merchandise imports by trading partner, 2012 -2017 ................................ ... 165 
 WT/TPR/S/372 • Colombia  
 
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Table A2. 1 Notifications under the WTO Agreements, 1 January 2012 to 31 December 
2017  ................................ ................................ ................................ .............................  166 
Table A2. 2 International investment agreements and agreements to avoid double taxation  ...... 168 
 
Table A4. 1 Tariff lines subject to preferential quotas, 2017  ................................ ..................  169 
 
 
  WT/TPR/S/372 • 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 2017, GDP is 
estimated to have grown by 1.8%. This slowdown was the result of a decre ase 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, the authorities have launched an 
economic reform programme, which includes tax incen tives, 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 ch allenge, 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 the series of measures to improve revenue 
collection, and also provided for the grad ual 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 GDP growth close to its long -term potential. During the review 
period, inflation di d 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 the 
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 considerably 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 petroleum 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 
materials. Accordingly, it is trying to promote exports of services and non -traditi onal 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 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 stood at 4.3% of GDP in 2016 and 3.3% in 2017, an improvement due partly to a 
decre ase in goods imports.  
6. During the review period, Colombia undertook to simplify and harmonize its regulatory 
framework by issuing single regulatory decrees containing a compilation of all regulatory decrees 
in force for each sector. Twenty -four single regul atory 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 regulatory system continues to be complicated by the frequent 
amendments that are int roduced, 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 im plement 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 tr ade 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 the 
economy.  WT/TPR/S/372 • Colombia  
 
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  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. It has also acceded to the Protocol amending the Agreement on Trade -Related Aspects of 
Intellectual Property Rights, and participates in the Information Tec hnology 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 Facilitation Agreement, which was then before 
the Constitutional Court. Since its last R eview 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 following 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 
subject 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 covering trade in 
goods and services with the Pacific Alliance, Costa Rica, the Republ ic 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 relations 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 effect for Switzerland and Liechtenstein in 2011, became effective for 
Iceland and No rway 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 ma y 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 f oreign investments is mandatory. The procedure s for 
registering foreign direct investments made under contractual  arrangements was simplified 
in 2017. While f inancial stability contracts were eliminated at the end o f 2012 owing to their 
high cost, t hose th at 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, it has adopted a number of measures to modernize the legal framework and facilitat e 
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 requesting 
early decisions; abbreviated customs clearance; electronic payment; and improvements in the 
system of g uarantees. 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 bet ween the 
customs authority and the declarant concerning the declared value.  
12. During the period under review, Colombia continued to implement  the Structural 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 rate 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 agric ultura 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 
and 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.  WT/TPR/S/372 • Colombia  
 
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  13. Colombia applies the Andean Price Band S ystem (SAFP), which consists of variable duties 
calculated on the basis of a re ference 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, white maize, yellow soya, wheat , and chicken cuts. 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 prevent and control customs fraud af fecting 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 unde r 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 December 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 tho se 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 importation) which requires prior import registrati on 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 
licence 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 investigations, 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 proceeding s were under way, 
includ 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 we re any subsidy investigations 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 req uirements are processed 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 report 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 mee t minimum investment, 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 cor responding duties 
and 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 within 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 inv estment and to promote the development of specific sectors. 
As 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  WT/TPR/S/372 • Colombia  
 
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  credit needs of both 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 F und for Modernization 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 technological development through tax  incentives to persons 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 to tal or partial exemption from 
or suspension of customs duties and taxes or deferral or elimination of payment of VAT. T he Plan 
covers i nputs , 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 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 by 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, primarily 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 
submitted 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 pr oducts, 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 entity 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 sanitar y 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 measure s must include a technical 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 
there 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 agreement s were authorized between 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 im plementation 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, natural gas, liquefied petroleum 
gas, drinking water, sanitation and electricity.  WT/TPR/S/372 • Colombia  
 
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  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 that 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 competi tion and market access , 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 at imp roving the relevant regulatory framework and corporate governance to enable them 
to create valu e. 
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 obser ver in the committee. 
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 Age ncy, Colombia Compra 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 governme nt procurement regime 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 val ue of 
contracts awarded 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 res ponsible 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 strate gy was developed , 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 greate r 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 agricul tural 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 food 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 for 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 Stabilizatio n Funds (FEPs) in order 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 activi ties 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 stimulate 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 tariff WT/TPR/S/372 • Colombia  
 
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  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 Colomb ia, and since 2013, they 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 Resolution 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 t he 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 us e of electronic deposits 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 w ere made to promote greater 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 mandatory. 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  of air transport services. 
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 Colombia 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 grea ter 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 ratio  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 extreme mo netary 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 
2010, 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 prices t hat 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 strate gy 
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 -enhancing 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 investment i nclude: 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 the permanent elimination of duties on more than 3,400 tariff lines  
                                                
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 servi ces that meets the basic needs of a person or household. A 
household with four people is considered poor in 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 consider ed 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/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=latestreleased . 
4 Idem.  WT/TPR/S/372 • Colombia  
 
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  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 equivalent to  SDR 8,180  million (about 
US$11.5  billion).6 This replaced the previous SDR  3,870  million (around US$5.4  billion) 
arrangement. The Colombian authorities have stated their intention to treat the new arrangement 
as precautionary and to refrain from drawing o n it. When justifying the credit, the IMF noted that 
Colombia's macroeconomic policies provide it with the flexibility needed to cope with the fall in oil 
prices. In June  2017, the IMF Executive Board reaffirmed Colombia's continued qualification to 
access  FCL resources.7 
Table 1.1 Basic economic indicators, 2012 -2017  
 2012  2013  2014  2015  2016a 2017a 
Gross domestic product, seasonally adjusted series (GDP)  
Current GDP (Col$  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), Colomb ia Repunta . Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHC P_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 Arrangem ent. Viewed at: 
http://www.imf.org/en/News/Articles/2017/06/06/pr17211 -imf-executive -board -complet es-review -of-
colombia -performance -under -the-fcl-arrangement . WT/TPR/S/372 • 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 window.  
e The real exchange rate index (I TCRIPC (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 trade (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 deteriorating terms of trade and a lower le vel 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/archivos/reporte -estabilidad -financiera -septiembre -
2017.pdf . WT/TPR/S/372 • 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, expand ing 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, gross 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 pr evious 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 imbalance 
(savings -investment gap) f rom 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 sp ur 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 Government'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 contracted but by relatively less. In 201 7, 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 Bank'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 spending, 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, w hile 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 y ear, 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 64.7 % 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 Fin ance (2017), Marco Fiscal de Mediano Plazo 2017 . Viewed at: 
http://www.minhacienda.gov.co/HomeMinhacien da/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=latestreleased . WT/TPR/S/372 • 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 formulated and implemented by the Mi nistry 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 
been 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 strengthen the National Tax and 
Custom s 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 du ring 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 projecting a deficit of 3.6 %, which it consider s 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 estimated 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/archivos/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&revisio n=latestreleased . 
16 Idem.  WT/TPR/S/372 • 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 he ld 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 decentr alized 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 
                                                
17 The structural deficit is defined as the difference between structural income and structural 
expenditure observed at the fiscal year -end. Structural income is determi ned by deducting from total 
GNC income the portion that is exp lained by the tax and energy cycles, while structural expenditure is the 
same as total spending in the absence of any countercyclical spending programmes explicitly allowed by the WT/TPR/S/372 • Colombia  
 
- 21 - 
 
  2016 Fiscal Rule 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 common 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% between 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 resident 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 wi th 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 90% 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 tax ed on their net profit or surplus at a special 
flat rate of 20%.  
                                                                                                                                                  
Fiscal Rule. The cyclical component of tax revenue is determined by using th e output gap, which is the 
percentage difference between actual and potential GDP. The energy cycle is 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 exchange 
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_WC C-
073994%2F%2FidcPrimaryFile&revision=latestreleased . 
18 Idem.  
19 Online information from the Ministry of Finance, viewed at: http://www.minhacienda.gov.co . WT/TPR/S/372 • Colombia  
 
- 22 - 
 
  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 a nd conditions 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 y ear 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 Nation al Administrative 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 cigarettes 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 o f excise 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 Fi nance 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 
investment. 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 exc hange -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 o f inflation 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), IMF 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.imf.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 mini mum 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 monetary expansion auctions. There is also a maximum expansion rate.  WT/TPR/S/372 • Colombia  
 
- 23 - 
 
  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 r ecorded its lowest recent level in July (3.4 %), before rising to post an annual 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 inflation 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 f ace 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 authorit y, 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 cl early 
reflect economic fundamentals and could stoke inflation and impair economic 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, foreign 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 inflati on targets.26 
1.30.   During the entire period under review, and partly owing to the 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 follow ed 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 • 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 t hen 
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, c onstruction, 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 pro fits of firms operating in the mining -energy sector. Outflows in this 
category totalled US$8,167  million in 2017. Current transfers, which are mainly workers' 
                                                
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 • Colombia  
 
- 25 - 
 
  remittances from abroad, remain one of the main sources of income on the current account, 
exceedi ng 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 i nternational reserves totalled US$46,682  million in 2016, equivalent to 
10.3 months' imports of goods and services.  
1.37.   The 2016 results reflected an adjustment in the current -account deficit of about 
US$6,239  million, equivalent to 2.0 percentage points of GD P. 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 current -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 been gradual since 2012, it has gathered pace since 2014 and is 
explained by lower international commodity prices, especially in t he 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 coun tries in the region which also devalued and export mainly to 
developed economies. Moreover, the real depreciation of the peso inflated production costs, since 
the import component of exports has been increasing, especially in the manufacturing sector.  
1.3.1.1.1   Comp osition of merchandise trade  
1.39.   Products of the mining sector represented around 54 % of Colombian exports in 2017, 
compared to nearly 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 20.7 % 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).  
                                                
28 Ministry of Finance (2017), Marco Fiscal de Mediano Plazo 2017 , p. 122. Viewed at: 
http://www.minhacie nda.gov.co/HomeMinhacienda/ShowProperty?nodeId=%2FOCS%2FP_MHCP_WCC -
078748%2F%2FidcPrimaryFile&revision=latestreleased . 
29 This section uses data from the United Nations Comtrade database, which may differ from the figures 
presented in the balance of payment s. WT/TPR/S/372 • Colombia  
 
- 26 - 
 
  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.  
1.41.   The manufacturing sector generated about a quarter of Colombia's exports in 2017, 
compared to 17.5 % in 2012 (Table A1.1). Chemic al products remain the leading manufactured 
export.  
1.42.   Colombia continues to import mainly manufactures, which accounted for over 80 % of the 
total in 2017 (Table A1.2), led by machinery (22.7 % of total imports in 2017), transport 
equipment (10.4 %) and chemica l 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 % 
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 • Colombia  
 
- 27 - 
 
  (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 th e 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 countr ies of the Andean Community 
represented 7.5 % of the total in the case of exports, and 3.8 % in the case of imports.  
1.3.1.2   Services trade  
1.44.   During the period under review, Colombia continued to run a deficit in its services trade, 
owing to a large shortfall in trans port, 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 defic it 
decreased during the period, in the wake of weaker growth in merchandise trade, particularly 
hydrocarbon exports. The balance of the travel item also remained negative until 2015 but posted 
surpluses in 2016 and 2017. Trade in information and communicat ions technology services 
continued negative for Colombia. In general, income from services trended upwards during the 
review period, while expenditures contracted until 2016.  WT/TPR/S/372 • Colombia  
 
- 28 - 
 
  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 • Colombia  
 
- 29 - 
 
  Table 1.4 Trade in servic es, 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 period under review, the petroleum and mining sectors continued to be the 
main recipients of forei gn 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 • Colombia  
 
- 30 - 
 
  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 • Colombia  
 
- 31 - 
 
  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 composition of the 
two houses of the Congress of the Republic, and it allows the candidates who in the vote count 
came im mediately behind the persons declared President and Vice -President of the Republic to 
occupy a seat in the Senate and the House of Representatives respectively.3 These changes will be 
implemented as of 2018 when the next elections will take place.  
2.2.  There ar e three branches of government in Colombia: the executive, the legislative and the 
judicial branches, all with separate functions. The national executive branch comprises the 
President of the Republic, 16 ministers4 and the heads of eight administrative de partments5, who 
make up the National Government. The President of the Republic is the Head of State and of the 
National Government. The national executive branch also includes ten supervisory authorities, 
35 public institutions, 37 special administrative u nits, 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, wh ich is made up of 
two chambers, the Senate and the House of Representatives, whose members are elected 
simultaneously 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 Commission, the Office of the Public Prosecutor, courts and 
judges.7 The authorities of indigenous territories may discharge jurisdictional functions, pr ovided 
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 
ordinances 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 Go vernment, 5 % of the electorate and 30 % of the departmental deputies or 
municipal councillors. Some bodies of the Judiciary, the National Electoral Council, the 
Attorney  General of the Nation and the Comptroller -General of the Republic may also prepare draf t 
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; h e may voice objections if he deems the 
                                                
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 amended 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; Cult ure; 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 I ntelligence 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, 11 5 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 o f the Political Constitution).  WT/TPR/S/372 • Colombia  
 
- 32 - 
 
  draft law to be unconstitutional or if he disagrees with its content. Likewise, 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. Dra ft laws may be subject to an approval referendum, while laws (with some 
exceptions) may be put to a repeal referendum.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 to issue decree -laws and legislative decrees with the force of law. 
Decree -laws are those issued by the President of the Republic when the Congres s 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 i n force that had become obsolete or fallen into disuse and had been 
(expressly or tacitly) repealed. This process 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 Reg ulatory 
Decree (DUR), which contains a compilation of all regulatory decrees in force for each sector and 
becomes the sole source for legal consultation.14 Legislation may be consulted on line, through the 
Single System of Regulatory Information (SUIN JURIS COL).15 
                                                
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 Republi c 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 structure 
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 . WT/TPR/S/372 • 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. 
2.9.  Twenty -four DURs were issued in 2017. Most of the decrees re gulating trade are contained in 
Single Regulatory 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 services 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 Constitutional 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 t he Republic may ratify the 
agreement. However, an economic or trade agreement reached in international organizations may 
be implemented provisionally, provided that the ratification process has begun.16 
                                                
16 Articles 150, 189, 224 and 241 of the Constitution.  
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 • Colombia  
 
- 34 - 
 
  2.11.   On the trade front, the Constitution (Article 336) aut horizes monopolies only if they are 
established 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 bet ting, and the manufacture and sale of spirits (Section 3.3.4).  
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 sanit ary 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 taxes.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 recommendations on all matters related to foreign trade, such as tariff 
measures, customs regimes and procedures, customs valuation, export promotion or the ado ption 
of special trade measures, among others.  
2.14.   The MinCIT  has a technical committee, the Committee on Customs, 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 o r reduce tariff rates.18 
2.15.   The MinCIT  represents Colombia in international trade negotiations. The Higher Council 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 implementing 
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 secu ring better market access conditions so as to boost exports and 
find the best suppliers for its imports. Under the current National Development Plan (PND) 
2014-2018 government action focuses on enhancing productivity as the main driver of export 
growth. Em phasis 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 marke ts to which Colombia already exports, 
or new markets. It is believed that this aim can be achieved by taking 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 requirements. Other actions include supporting companies in 
developing innovative processes for the production of technologically more sophisticated goods . 
                                                
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 . 
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 . WT/TPR/S/372 • Colombia  
 
- 35 - 
 
  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 form alities for granting companies access to the Special Import -Export 
Systems ("Plan Vallejo") (Section 3.3.1.5) 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 of trade policy implementation. These include 
the MinCIT  (through its Office of Economic Studies) or the National Planning Department (through 
the Nati onal System of Management and Results Evaluation (SINERGIA) and the 
CONPES  document follow -up system (SISCONPES)). 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 policies 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 agreements 
ratified by Colombia. The evaluation, which will be submitted to the trade unions, will be presented 
to the Congress of the Republic. As at end 20 17, no evaluation had taken place. The authorities 
nonetheless stress that the trade defence mechanisms under 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 fif th review of the country's 
trade  policies by the Trade Policy Review Body. Colombia has signed the protocols on 
telecommunications and financial services annexed to the General Agreement on Trade 
in Services, has acceded to the Protocol amending the Agreem ent on Trade -Related Aspects of 
Intellectual Property Rights, and participates in the Information Technology Agreement (ITA). 
Colombia is not a party to the plurilateral agreements, but participates with observer status in the 
Committee administering the A greement 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 woul d 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 Colom bia's imposition of a "compound tariff" on certain imports of tex tiles, apparel and 
footwear of C hapters 61 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 Decem ber 2017 
                                                
21 According to the authorities, companies have saved some US$ 400  million annually as a  result of the 
elimination of tariffs.  
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.  WT/TPR/S/372 • Colombia  
 
- 36 - 
 
  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 operators, and they consider 
that trade liberalization and the elimination of distortions will contribute to economi c growth, 
job creation, greater fairness, and increased participation in value chains. Although Colombia 
recognizes and underscores the achievements of the negotiation process, it stresses that there is 
still room for improvement in key areas such as agric ulture. Likewise, Colombia favours the 
negotiation of new topics (for example, electronic commerce, investment facilitation and greater 
participation by micro, medium and small enterprises in international trade) as well as building 
awareness of and seekin g 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 Integration Association (LAIA), in which 
framework it has signed partial scope agreements with member and non -member partn ers. 
Colombia is a founding member of the Andean Community of Nations (CAN) and of the 
Pacific  Alliance and participates in several bilateral and plurilateral trade agreements (Chart 2.2). 
Colombia signed preferential trade agreements with Israel and Panam a29 in 2013, and in early 
2018 was engaged in negotiations with Japan and Turkey. In the framework of the Pacific Alliance, 
negotiations began in 2017 on a free trade agreement with Australia, Canada, New Zealand and 
Singapore, which are candidates for asso ciate membership of the Pacific Alliance. The authorities 
point out that these negotiations are aimed at enhancing the integration of the Pacific 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 t rade 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.  
                                                
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 . 
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 • Colombia  
 
- 37 - 
 
  Chart 2.2 Regional trade agreements 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 
WT/TPR/S/372 • Colombia  
 
- 38 - 
 
  the 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 
as 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 • 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_alcance_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 pa rliament. For further 
information on the agreement with the EFTA, 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.as px?code=170 . 
41 Online information from the M inCIT, viewed at: 
http://www.tlc.gov.co/publicaciones/31209/acuerdo_sobre_el_come rcio_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 • 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. 
                                                
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.banrep.gov.co/es/compendio -dcin83 . WT/TPR/S/372 • Colombia  
 
- 41 - 
 
  Under the law, however, 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 LPG, water supply and sewerage services); (ii) the provision of broadcasting 
services; (iii) the provision of land transport services; and (iv) the construction, operation and mainten ance of 
public transport infrastructure.  WT/TPR/S/372 • 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 proce ss of reviewing the constitutionality of 
Law No.  1.879, following which 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 
particip ation in economic integration processes, as well as the facilitation 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 of 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 or der 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 
phytosan itary risks, as well as the violation of intellectual property rights, 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 provisi ons 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 implementation, 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 fore ign trade operators classified on the basis of risk, and the 
elimination 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 seven 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 i n greater detail.  
                                                
1 WTO Documents WT/PCTF/N/COL/1 of 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 entry 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 entr y into force of Decree No.  390. WT/TPR/S/372 • Colombia  
 
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  3.6.  Decree No.  390 (Article 142) establishes the following import regimes: definitive importation; 
suspensive regimes; processing and assembly; and special import regimes; the latter will be 
phased in when the corresponding electronic informa tion systems (SIEs) are available.  
3.7.  Other measures designed to facilitate 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 infrast ructures.  
3.8.  The computerization of formalities for all customs regimes 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 electr onically, together with the use of 
digital signatures. A Computer Forensic 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 meas ures is that customs clearance should not take more than 
48 hours from 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 p rior 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 registration 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 w here the latter may have given a mandate to 
a customs broker. The rules 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. Du ring the transition period, the use of the services of a customs broker 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 customs 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 accompanied by the following supporting documents that may be submitted in 
                                                
6 Under the special entry operations, through 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 exit 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 o f: temporary 
admission for re -export in the same state; temporary admission 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/#Indicad orProgEntI/26/1146/4401 . 
10 In order to import and market mercury and products 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 Ci rcular No.  21 of 2017.  
12 Article 39 of Decree No.  390 of 7  March  2016.  
13 Ibid.,  Article 669.  WT/TPR/S/372 • Colombia  
 
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  electronic or digitized form: commercial invoice, transport document (bill of lading, airway bill or 
freight bill), freight manifest, packing list, Andean Value Declaration (for imports whose declared 
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 required 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 durin g 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 h as been eliminated.  
3.13.   Another advance has been the implementation, since 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 compan ies 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, and 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 p rocess. 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 
                                                
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.  WT/TPR/S/372 • Colombia  
 
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  right holder based on the presumption of p irating or counterfeiting; such a request may also arise 
as a result of prior notification from the DIAN.18 
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 to 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 Natio nal 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 
practic e 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 borde r procedures.  
3.18.   Pursuant to Decree No.  390, import duties and taxes are 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 of 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 t o ensure 
payment of customs obligations.20 In addition, when guarantees 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 (covering 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 request 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 
inform ation, the deadline for supplying the information is two months from 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 custom s territory may 
be stored for a year (renewable for a second year) under customs control 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 p lace 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 
                                                
18 Ibid.,  Article 221, paragraph 2.  
19 Risks associated with the persons involved in the logistics chain; the foreign trade operations; 
enforceable payment obligations; non -fulfilment of t ax, customs and foreign -exchange obligations; evasion of 
payment of duties through distortion of the value, origin 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; insurance company guarantees; banking institution guarantees; open promissory note; 
mercantile trust guarantees; endorsement of credit instruments; a nd any other kind of guarantee stipulated by 
the DIAN.  
21 Decree No.  390, Chapter II, Section II; and DIAN Resolution No.  041 of 11  May 2016.  WT/TPR/S/372 • Colombia  
 
- 46 - 
 
  their free movement.22 No processing operations may be carried out under the warehousing 
regime.  
3.22.   There are several regimes for goods transit: customs transit, cabotage and transhipmen t. 
Goods covered by any of these regimes are not subject to payment of import duties and 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 unde r the transit regime may enter 
through any of Colombia's ports of entry, but the DIAN is 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 arms, 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 f orbidden 
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 comin g 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 produ ce an 
international customs transit declaration (ICTD); in other cases, the rules provided 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 1 994 and any provisions amending or 
replacing it must be observed. Customs transit operations 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 covered 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 territory 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 tre atment: inclusion in a customs transit regime, 
customs warehouse or import storage facilities; 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 na tural or legal 
persons or branch offices of foreign companies that form or take part directly 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 premises) to carry out customs operations and formalities. For 
this purpose, foreign trade operators must satisfy both general and specific requirements 
according to their acti vity, and also obtain approval, with a medium or low risk rating, based on 
the risk management 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 the proliferation 
of weapons of mass destruction.  
3.26.   Decree No.  390 also establishes three categories of special treatment for importers, 
exporters and foreign trade operato rs 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 offi cio. Each category has specific 
                                                
22 Decree No.  390 of 7  March  2016, Title VIII.  
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 postal 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 
importation/exportation by means of networks or pipelines; Common Control Zones for several ports or docks; 
verification zones for express delivery or couri er services; primary areas of airports, ports or docks and border 
crossing points.  WT/TPR/S/372 • Colombia  
 
- 47 - 
 
  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 were 37 OEA -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 shipment  
 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 (including 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 I LE 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 errors 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, a s 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 regulations. 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 inte rvention is explicitly provided for in cases of violation of intellectual 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 reconsiderat ion, as the case may be, which must be lodged within 
15 working days 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 fo r issuing the ruling on an appeal for reconsideration is four months from the day following 
notification of the decision admitting the appeal. There is no further recourse against the ruling on 
                                                
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.  
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.  WT/TPR/S/372 • Colombia  
 
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  an application for reconsideration, and the administrative cha nnel is thus considered to have been 
exhausted.29 
3.1.1.3   Customs valuation  
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 through 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 Or ganization (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 rulings on value criteria at the request of a party, under a proc edure 
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 Resolution 
No. 72 of 2016. In addition, in accordance with Andean D ecision 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 i nformation 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 Agreem ent 
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 the 
application, in their order, of the other methods provided fo r 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 basis, in case 
of dispute between the customs authority and the dec larant 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 pri ce. 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 reasonable criterion for valuing the imported good. Reference pric es are 
regularly updated by the DIAN. At present, reference prices are applied to 66 products, including 
agricultural products, footwear, clothing, cellular telephones, computers, tyres, bicycles and 
vehicles.  
3.34.   In accordance with Decree No.  2.685 of 1999 (A rticle 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 the 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.  
                                                
29 Decree No.  390 of 2016, Chapter X.  
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  Novemb er 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/CO L/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 • Colombia  
 
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  3.35.   Decree No.  390 (Article 221) maintains the options of the submission of supplementary 
documents, correction of the declaration of value and lodging of a guarante e. 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 persons or high -risk users, 
the specific guarantee must take the fo rm 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 declared prices. When the declarant has lodged a 
comprehensive gu arantee 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 or igin 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 (Articles 24 -32); and Decree No.  1.351 of 22  August  2016 (supply s hortage).  
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 supporting 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 provisions 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 
conditions of production and use of inputs to determine origin. The gen eral 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 more 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 also 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 
short 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 certification is carried out through 
a competent authority. Colombia ha s 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).  
                                                
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 • Colombia  
 
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  3.42.   The DIAN may carry out ex officio checks to verify origin as a result of a control programme 
after receiving a complaint 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 for 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 on the following imported products: 
cigarettes, chemical products,  clothing and textiles, bed linen, vehicles, white goods, optical goods, 
electric generators, palm oil and tyres. In the case of exports, origin verifications focused on 
flowers (83 %), fruit, clothing, biscuits, marine fisheries products and chocolate prod ucts. 
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 wit h 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 Community 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, and 
No. 882 of 30  April 2012. Tariff cuts were also part of the Pr oductivity 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 an d 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, both 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 than 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.   Decrees 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 declared f.o.b. price was lower 
than or equal to: US$6 per pair for im ports 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 t han 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 national customs territory.  
3.47.   Decree No.  1.745 of 2  November  2016 intro duced 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 the 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 fibres, yarns and woven fabrics (Table 3.3).  WT/TPR/S/372 • Colombia  
 
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  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 
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 the 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 countrie s' 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 Sy stem (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 palm oil, soya oi l, white rice, white s ugar, 
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 temporary 
reductions in the rates app lied 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.  WT/TPR/S/372 • Colombia  
 
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  Table 3.4 MFN tariff structure, 2011 and 2017  
(%) 
 2011 (HS0 7) 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 
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 are 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 rises to 32, ranging from 0 to 174.3 %. The 
maximum applied rate, excluding the SAFP, remains th e 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 
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 • Colombia  
 
- 53 - 
 
  highest average duties per WTO category 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 certifie d 
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.  
Table 3.5 Summary analysis of the MFN tariff, 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 WT/TPR/S/372 • 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)  
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 
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 subregion, 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 import quota 
with a preferential tariff for certain agricultural products such as yello w 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 importer should also purchase a specified 
quantity of the domestic output by public au ction 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 treatment to imports from its CAN trading partners (the 
Plurinational State of Bolivia, Ecu ador 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 Partial Scope 
Agreement was signed with the Bolivarian Republic of Venezuela.  
                                                
40 Decree No.  430 of 2004.  WT/TPR/S/372 • Colombia  
 
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  3.56.   The average p referential 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 tariffs applied on agricultural products are generally higher than those applied to 
non-agricultural products, except in the case of CAN countries (Table 3.6).  
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 modalities or 
customs regimes, such as the temporary admission regime. T hese 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 of 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 WT/TPR/S/372 • Colombia  
 
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  No. 1.116 of 29  June 2017 conta in 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.  
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 advantages 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 imports of used agricultural machinery at least 
one year old and at most se ven 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 concessions 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 tariffs to 0 % on raw 
materials and capital goods not included in the dom estic 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 reduct ion 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 order 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 industry needs. Likewise, under Decree 
No. 1.573 of 25  July 2012 the ta riff 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 temporary tariff reductions on various 
occasions in response to supply shortfa lls, 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 reduced to zero, until 30  June 2016, the duty 
on imports of certain agric ultural 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 application 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 imp orts 
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 abroad, 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 
                                                
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 materials and capital 
goods not included in the national production register.  WT/TPR/S/372 • Colombia  
 
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  beer, VAT is charged on the "retail price", which is calculated differently depending on whether the 
beer is prod uced 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, 
including tariffs, plus a 30 % marketing margin.43 This situation could lea d 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 f rom 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 f or basic industriesb, provided they are not produced in Colombia  
Machinery 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 Ministry 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 high 
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 imported by research or technological development centres and educational institutions recognized by the Ministry 
of Education and intended for scientific, technological or innovation proje cts, meeting the criteria of the National Council on 
Tax Benefits for Science, Technology and Innovation  
a The exemptions for vehicles are non -transferable within the year following their importation.  
b Mining, hydrocarbons, heavy chemicals, iron and stee l, extractive metallurgy, electricity generation 
and distribution, and catchment, 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 use ful life. Non -compliance is sanctioned by the levying of 
the unpaid VAT plus 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.  
                                                
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; machinery 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 • Colombia  
 
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  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, aper itifs and the 
like; and cigarettes and manufactured tobacco.45 The excise 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 according 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 cust oms 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 Mi nistry'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 at: http://www.corteconstitucional.gov.co/relatoria/1996/C -412-96.htm . 
47 Article 4 of 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/inve stigaciones/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 • 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.  
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% 
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.  
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 lev ied per gallon. Law No.  1.819 of 
2016 excludes the sale of biofuels from this tax, as well 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 previous 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 
                                                
51 The "national excise tax" was established by Law. No.  1.607 o f 2012 (Articles 71 to 83).  
52 Article 58 of Law No.  223 of 1995.  
53 Article 218 of Law No.  1.819 of 2016.  WT/TPR/S/372 • Colombia  
 
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  reference retail price established and certified monthly by the Ministry of Mining and Energy 
(Table  3.11).  
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 online 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 im port of fossil 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 intern ational traffic 
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 sho wn in Table 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.  
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.  
                                                
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.  WT/TPR/S/372 • Colombia  
 
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  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 
controls, 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 or war material or reserved material destined for the armed 
forces and the national police; (g) imports using the annual licensing system (Table 3.13).59 
                                                
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.  
59 The annual licensing system covers imports of the mining and petroleum 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 • Colombia  
 
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  3.82.   Annex 1 of Decree No.  925 of 2013 includes 180 tariff lines 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 Decree  
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 pro cessed 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 auth orizations 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 abo ut 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  
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 
privat e sector  Donations to the official 
sector; imports for the 
education 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  WT/TPR/S/372 • Colombia  
 
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  Product category  Control entity  Type of product 
covered  Justification  Legal measure  
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 
streamlinin g 
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, 40.12 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 production 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 market 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, a nd 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 d rug 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 t he context of Colombia's 
accession to the OECD, its trade partners 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 r aised the cost of new trucks and of transport, making 
the Colombian economy less competitive.  
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 resources 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 bee n 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 
withou t requiring the scrapping of old vehicles. This system will remain in place at least until 
31 December  2018. The authorities have stated that currently the transitional system is primarily 
used for introducing new trucks.  
                                                
60 WTO do cument G/LIC/N/3/COL/11 of 21  March  2016.  
61 Ministry of Trade, Industry and Tourism, Prior Licensing System Manual. Viewed at: 
http://www.vuce.gov.co/fileman/files/ma nuales/MANUAL_LIC_PREVIA_09_30.pdf . 
62 Presidential Decree No.  1.517 of 22  September  2016.  WT/TPR/S/372 • Colombia  
 
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  3.1.6   Anti-dumping, countervailing and s afeguard 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 respo nsible for investigating dumping, subsidy and 
safeguard cases. The 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 r egional 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 investi gations.  
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 intro duced by Decree No.  1.750 
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 addition, 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 countries 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 
preventi ng 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.  
                                                
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 concern ed; the Director of the DIAN; the Deputy 
Director -General of the National Planning 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, 
depen ding on the case), and the Director of Foreign Trade who participates in an advisory 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 • Colombia  
 
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  Box 3.1 Main changes introduced by De cree No.  1.750 of 2015  
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 country. 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 in vestigation 
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 investigating 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 ap plied in a "sufficient 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 investigation as of the start of the 
investigation.  
Article 76. Review: adds two factors that t he 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 m aterial 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, threat of injury or material retardation caused to the domestic industry by the 
dumped impo rts. 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 throu gh 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 Trade 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 "lo wer 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 duties may be 
reviewed on 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 industry. 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 accordance with the Code of Administrative Procedure and Administrative Disputes.  
3.93.   The authoritie s 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 provisional duties. It also carried out 15 sunset reviews, in 14 of which extension of the duti es 
was granted. As at end December  2017, 12 proceedings were under way, including new 
                                                
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 • Colombia  
 
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  investigations and five -year reviews. At the same date, the average duration of anti -dumping 
duties in force was 3.5 years.  
3.94.   At 31  December  2017, Colombia maintained 17 de finitive 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 k itchenware and loose articles of earthenware or porcelain; link chains, 
polished, galvanized; hoes, bars and mattocks; casing and tubing; radial tyres for buses and 
trucks; 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 margin 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)  
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/KOR  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)  WT/TPR/S/372 • Colombia  
 
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  Product (HS code)  Investigation ID 
number  Measure  Date of initial  
imposition or latest 
extension  
(Official Journal No.)  
Mexico  
DOP plasticizer (2917.32.00.00 ) RD-190-02-081/MEX  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 Mexico 25.00%; 
and other e xporters, 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 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 
restrictive 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 tariff 
                                                
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.  
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.  WT/TPR/S/372 • Colombia  
 
- 68 - 
 
  quota.70 In January  2015, Colombia initiated an investigation to eva luate 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 saf eguard measures for both 
WTO Members and non -member countries through 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 un der 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 fr ee trade agreement are excluded.73 Measures applied pursuant to Decree 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 De cree 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 orig inating 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 Cartagena 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 investigati on (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, inclu ding the sale of goods from the national territory to a Free Zone. Export 
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 natural 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 represente d in Colombia. Coffee exporters 
must also make an annual application for registration in the Register of Coffee Exporters, which is 
a means of 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 
                                                
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 . 
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.  WT/TPR/S/372 • Colombia  
 
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  includes 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. The application must be accompanied by the following documents: a 
document substantiating the transaction (e.g. commercial invoice); any applicable approvals or 
authorizations; cus toms 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 authorization application, the 
declarant must, if the product to be exported so requires, provide the following: prior registration 
documents (emeralds, medicines, panela); marketing pe rmit (fish and molluscs), prior 
authorizations (primary forest products), clearances (arms, ammunition, explosives), or sanitary 
inspection certificates (food), tax payment certificate (coal, coffee, panela) and certificates of 
origin (preferential agreeme nts). 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 elec tronic 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 transpor ter, 
the shipment authorization application 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 t he 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 
develo pment of these sectors.  
3.110.   Coffee exports are 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 may never be less than US$0.02 per pound of c offee exported.80 The purpose of this 
contribution 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 o n 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 th e 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 
                                                
79 Ibid., Article 343.  
80 Law No.  1.151 of 2007.  
81 Decree No.  2.407 of 2000.  WT/TPR/S/372 • Colombia  
 
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  six months prior to  the date of determination, after allowing 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, T ariff and Foreign 
Trade Matters are authorized 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 domestic 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 o r 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 und er 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 p urposes. Each year the 
Ministry of Agriculture, 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 administe r its commitments under the Free Trade Agreement (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 2 9 December 2016, the MinCIT  Foreign Trade 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  
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  
                                                
82 National Mining Agency , Resolution 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 • Colombia  
 
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  Products  Entity  Requirement  Legal measure  Justification  
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 Rur al 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 notific ation 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 notification, Colombia stated that it had not granted 
any subsidies during the p eriods 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 expor t 
subsidies or provided any food aid between 1 January and 31 December 2011.87 
3.2.4.1.1   Free Zones  
3.120.   In order to comply with its commitments under the WTO Agreement on Subsidies and 
Countervailing 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 exercised by the DIAN. 
In addition, through Decree No. 2.147 of 23 December 201 6 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 entities involved in the process for declaring the 
establishment of free zones.88 At the regional level, Article 57 o f Andean Community Decision 
                                                
86 WTO document G/SCM/N/186/COL of 30 May 2011.  
87 WTO document G/AG/N/COL/52 of 10 August 2016.  
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 Decree 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 secretariat of WT/TPR/S/372 • Colombia  
 
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  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 Col ombia 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 special tax, customs and foreign trade treatment.  
3.122.   Two kinds of free zone may be est ablished 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 hydrocarb ons 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 delimited 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 enterprises, 
dairy sector enterprises, agro -industrial projects, services enterpr ises (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 (ZFPC A) 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 t he 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 long -distance public telephony services; and (iv) any activity performed un der a 
State concession contract, with the exception of port concessions.93 
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 statutor y 
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 zone. The application 
must be accompanied by a Development Master Plan i ndicating the minimum requirements 
stipulated, as well as the estimated sales and a plan for the internationalization of the free zone.95 
                                                                                                                                                  
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 and Putumayo and the metropolita n 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. 
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 WT/TPR/S/372 • Colombia  
 
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  These requirements vary with the type of zone, the 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 Finance and Public Credit, the Director of the National Planning 
Departmen t (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 have been obtained from the DIAN (tax obligations and fiscal impact) and t he 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 (Table 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 or 
services produced in the free zone provided they pay the corresponding  taxes on the foreign 
component.99 Exports from ZFP/ZFPEs to foreign markets are also free and benefit from the tax 
incentives granted to exports from the national customs territory, such as the Tax Reimbursement 
Certificate (CERT) and exemption from or ref und 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 entitlement to reimbursement).101  
                                                                                                                                                  
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 
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.  WT/TPR/S/372 • Colombia  
 
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  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 481 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 s hows that they are for the account 
of a user. Export operations are authorized by the operator -user; no shipping 
authorization or export declaration 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 p roduced 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 customs 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 free zones, 
43 were ZFPs and 68 were ZFPEs. At J une 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 agro -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 d ata 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 Januar y-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 between January and July 2017, resulting in a trade deficit for 
free zones.  
                                                
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 • 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 o rder 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 t he 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 ti me. There 
are two kinds of users: the manager -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 establishm ent of the temporary zone expires, any 
goods 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 and 
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 formula 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 e xports 
shipped between 1 January and 30 April 2011, and the cert ificates expired on 
31 December2012 .105 The authorities have 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 • Colombia  
 
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  3.2.4.1.3   International Trading Companies (CI)  
3.134.   The special regime for In ternational 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 necessary to set up as an international trading company with the business purpose of 
engaging in foreign trade operations, obtain a Tax Identifica tion Number (NIT), enrol in the 
national register of exporters, and draw up a market study.108 The MinCIT is responsible for 
administering this instrument. The authorities indicated that there were 265 authorized CIs at 
December 2017.  
3.2.4.2   Export promotion  
3.135.   ProCol ombia (formerly Proexport) is a trust whose purpose is to promote exports (other 
than mining and energy exports), foreign 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 identification of market opportunities; design of market penetration strategies; 
internationalization of companies; support for the design of action pl ans; business contacts; 
support for foreign businesses interested in procuring Colombian goods and services or investing in 
Colombia; and partnerships between Colombian and foreign entities, both public and private, in 
order to expand the availability of r esources.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$112  million between 2012 and August 2017.  
Table 3.19 ProColombia: export promotion performance, 2012 -2017  
Year  Number of companies 
with business 
opportunities  Number of companies 
with business  Amount of business 
(US$ 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 limit ed company having as 
its main shareholder  the MinCIT (91.9%)111, is a development bank supervised by the Financial 
                                                
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_ci . 
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 • Colombia  
 
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  Supervisory Authority of Colombia, which functions as a second -tier bank through banks and other 
financial intermediaries to meet the credit n eeds of Colombian enterprises, whether they export or 
not. Abroad, Bancoldex offers financing to buyers of Colombian goods and services, through 
pre-authorized banks. The interest rate on loans granted by Bancoldex corresponds to the 
rediscount rate grante d 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, corres pondent 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 w ritten); 
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 diversifyin g 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 domestic 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 t o 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, 
                                                
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 com panies, financial cooperatives, savings and credit cooperatives, 
multi-asset cooperatives, employee funds, compensation funds and specialized micro -credit foundations.  WT/TPR/S/372 • Colombia  
 
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  small, medium and large enterprises in all economi c 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 
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 environmental 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 cred it limit arrangements, Bancoldex makes funds available to 
beneficiaries on preferential terms up to a specified limit for a specific need or business 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 initiatives, plans and programmes.  
3.144.   In 2016, Bancoldex granted loans totalling Col$3,657 billio n (about US$1.3 billion) 
(Table 3.21), of which 25.6% went to manufacturing, 23.3% to trade, 15.9% to financial services, 
14.2% to transport and 12.3% to other services.114 By type of user, in 2016 34.1% went to SMEs, 
24% to large enterprises, 20.8% to micro -enterprises and 21.1% to o thers.  
Table 3.21 Loans granted by Bancoldex, by user and sector, 2012 -2016  
(Col$ 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 re sources made 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 intermed iary according 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 sa le 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 Sol unión Colombia Seguro de Crédito S.A. The operation takes the form of endorsement 
                                                
113 Online information from Bancoldex, viewed at: https://www.bancoldex.com/Modalidades -de-
credito337/Capital -de-trabajo -y-sostenimiento -empresarial.aspx . 
114 Online information from the M inCIT, viewed at: 
http://www.mincit.gov.co/publicaciones/34800/descargar.php?id=77046 . WT/TPR/S/372 • Colombia  
 
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  of the discounted invoice in favour of Bancoldex. In 2016, Bancoldex placed Col$22,376 million 
through this product.115 
Table 3.22 Bancoldex Loan Portfolio 2012 -2016  
Product  Description  
Correspondent loan  Finances the purchase of Colombian products and services for companies 
abroad through correspondent entities in each country.  
Second -tier credit line in US$  
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 dome stic 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 in 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 bes t 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 Agriculture 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 (Sect ion 4.1).116 In addition 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 wo rking, 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 the 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 totalle d 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 continued to promote the MSME sector during the period 
covered by this review. Law No. 590 of 20 00, 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 the comprehensive development of MSMEs because of their potential to foster job 
                                                
115 MinCIT (2017), High -level Councils of Small and Medium Enterprises and of Micro -enterprises, 
Informe Anual de Gestión y Res ultados 2016.  
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, viewed 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 Enterprises and of Micro -enterprises, Informe Anual de Gestión y Resultados 2016 . WT/TPR/S/372 • Colombia  
 
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  creation, region al 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 or  
medium -sized are its total net worth, measured in SMMLVs,  and number of employees 
(Table  3.23). Other criteria may also be used, such as the value of gross annual sales; pursu ant to 
Law No. 1.450 of 2011, this will become the decisive criterion for the purposes 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 MSM Es created before 
31 December 2014 from the parafiscal contributions (contributions 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 y ears of operation, and applied a reduced 
rate from the third to the fifth year 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 o f their low employability could discount the value of their 
parafiscal contributions 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 entities 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 separat e account 
management system of Bancoldex.121 Table 3.24 shows Bancoldex disbursements on behalf of 
MSMEs as well as the number of beneficiary enterprises. It may be seen that in 2016 the 
disbursements totalled Col$1,900 billion (about US$680 million) in favo ur of 114,922 enterprises.  
Table 3.24 Bancoldex: Credit operations for MSMEs, 2012 -2016  
Year/Portfolio type  Number of recipient units  Amount disbursed  
(Col$ 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  
                                                
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 • Colombia  
 
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  Year/Portfolio type  Number of recipient units  Amount disbursed  
(Col$ billion)  
2015    
SMEs  6,202  1,272.1  
Micro -enterprises  106,239  611.4  
Overall total  112,441  1,883.5  
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 Smal l 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 No. 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 formulati on 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), c reated 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 and 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 f or 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 conditions 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  10,584  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  beneficiaries in the country's 32 
departments. In 2016 iNNpulsa Col ombia 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 between the public, private and academic sectors as a 
fundament al 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.  
                                                
122 The FNG sha reholders 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/port al/apps/php/index.get . 
124 iNNpulsa Colombia (2017), Informe de Gestión 2016 . Viewed at: 
https://www.innpulsacolombia.com/sites/default/files/informe_de_gestion_2016.pdf . WT/TPR/S/372 • Colombia  
 
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  3.158.   MSMEs are also eligible 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 
producers and 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 presents an annual plan of action for MSMEs defining the 
strategi es, 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 National Support System, in order to foster and contribute to great er 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, devel opment 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 ru ns 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 financing research, innovation and 
technological development proj ects 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 policies.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 2009 created the National 
Council on Tax Benefits, which is res ponsible for laying down the criteria and conditions for 
designating projects  as scientific, technological and innovative. The incentives available to those 
investing directly or through  research or technological development centres recognized by 
COLCIEN CIAS 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 taxable income of 175% of the amount invested in the period i n 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 income tax deduction of 175% 
of the value of the investment in th e 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 that 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 following 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 Plan 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 
                                                
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 COLCIENCI AS, viewed at: 
http://www.colciencias.gov.co/quienes_somos/sobre_colciencias/funciones . WT/TPR/S/372 • Colombia  
 
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  or for the export of services. The benefit consists of the allocation  of an import quota wit h 
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 
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 
materials and inputs), Decree No. 688/67 (capital goods an d 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 administering 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 Evaluat ion 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 electronic information system and established that the 
impor t 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 
association category is the average resulting from the evalua tion 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, producers, exporters 
or traders. Access to the Plan Va llejo 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 Vallejo  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 goo ds, intermediate goods or 
spare parts is directly engaged in the production and export of the good or service. In the case of WT/TPR/S/372 • Colombia  
 
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  indirect operations, the importer is not the person directly engaged in the production or export of 
the good or service.  
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 autom atically 
under the 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 an nual 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 corresponding aut horization. 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 produc ts 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 generated during t he 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 e quivalent 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 customs 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 authorization 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, certification, accreditation, designation and 
metrology. The MinCIT coordinates the National Quality Subsystem (SICAL), which is p art of the 
National Administrative System for Competitiveness and Innovation and has as its basic objectives  
to promote quality, animal, plant and human safety, environmental conservation and the 
competitiveness of the production sector, and to protect th e interests of consumers. The MinCIT 
                                                
127 Decree No. 390 of 7 March 2016 refers to importers, exporters and trusted fore ign 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 pre ceding such classification.  
128 The requirements 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 exports 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 replaced 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 dec larations 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. Th is 
category is gradually being replaced by that of the OEA.  WT/TPR/S/372 • Colombia  
 
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  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, implemen ting and enforcing technical regulations in Colombia.  
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 National Accreditation Organization of 
Colombia (ONAC); (g) the Sectoral Standardization Units; (h) accredited certification an d 
inspection bodies; (i) accredited Testing and Calibration Laboratories; and (j) other entities with 
accreditation and control functions 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 national standardizing body designated by the 
Government. ICONTEC is a private non -profit organization that is backed by the c ountry'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), created by 
Decree No. 4.738 of 2008, under the administrative c ontrol 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 policy 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 approved by ICONTEC. The NTSs are voluntary technica l 
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, regiona l 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 administrative provisions. Regulatory 
documents establis h 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 • Colombia  
 
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  3.3.2.2    Standardization  
3.179.   Standardization in Colombia is carried out by ICONTEC, the only entity authorized 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 (certification 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. ICONTEC 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 carried 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 
decisio ns 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, regulatory commissions and 
decentralized bodies. Acco rding 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 competence; the MinCIT is responsible for regul ating 
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 Integrat ed 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 noted 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 through decrees and resolutions, 
and exceptional ly 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 responsible for monitoring 
compliance with RTs i n 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; electric and gas -powered equipment subject to energ y 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 d e 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 • Colombia  
 
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  respect to RTs and legal metrology, the SIC fixes permitted tolerances for purposes of metrological 
control and estab lishes 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, importers, 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 specific 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 the SIC is responsible for supervising and moni toring 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 carried 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 substantive 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 implementation. 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 2012, 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 should 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, Certification, Technical Regulations and Metrolo gy, 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 standardiza tion, 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 servic es deemed of subregional interest, 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, departmen tal, local 
or municipal governments 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 
four focal points in member countries and the Community contact point in the CAN General 
                                                
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.o rg/Seccion.aspx?id=62&tipo=TE . 
137 Decision No. 615. Viewed at: 
http://intranet.comunidadandina.org/Documentos/decisiones/DEC615.doc . WT/TPR/S/372 • Colombia  
 
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  Secretariat, and operates an exporter alert system to warn exporters of mandatory technical 
requirements.138 Pursuant to Decision No. 615, notifi cations 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 within 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 member 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 conform ity 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, conformity assessment for products subj ect 
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 carried 
out by bodies accredited or des ignated 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 certification of 
management systems and 24 accred ited 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, inspection, 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, ICONTEC, 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 certification 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 laboratories. If the 
product satisfies th e 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 ca rried 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 validation 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, "And ean Exporter Alert System ", viewed 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 national accreditation body and the scope of the accreditation covers the product and the RT; 
or (b) it is issued by a foreign certif ication body accredited by an accreditation body recognized under the 
multilateral recognition agreements to which the national 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 • 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 established 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 subje ct 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 in Chapter 26 of Decree No. 1.074 of 2 015, 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 accepted technical rules for each of t he 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 well as 
procedures for complaint and app eal 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 granted for five years. In all cases the v alidity 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 accredit ation 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 Institute of Forensic Medicine 
and For ensic 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 enter 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 SIC was created. ONAC is res ponsible 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. 4 19, 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, whi ch is an integral part of Single Regulatory Decree No. 1.074 of 2015, 
provides that the chief functions of ONAC  as the national accreditation body are, inter alia: (a) to accredit 
conformity assessment bodies that so request, after verifying that they comp ly with requirements; ( b) to 
implement a monitoring programme that can demonstrate that the accredited bodies are complying with the 
requirements underpinning their accreditation; (c) to support the drafting of legislation, regulations and rules 
in the are a of conformity assessment; and (d) to act as the OECD compliance monitoring authority on good 
laboratory practice.  
143 Online information 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 Resolu tion 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 • 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 to bolster the country’s met rological 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 
work. It also offers the techn ical 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 
calibr ation 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 Metrology.147 Pursuant to Resolutio n 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 pr omote 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 responsible bodies  
3.205.   The formul ation 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 Rural 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, composed of the above -mentioned en tities, 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 th e 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 Deve lopment (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 certain 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 practices; (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. They then undergo public co nsultation, 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 terr itorial working groups (GTT); the ICA 
monitors plant and animal health.  
                                                
146 Online information from the SIC, vi ewed at: http://www.sic.gov.co/noticias/laboratorios -de-
metrologia -de-la-superindustria -reciben -certificad o-de-acreditacion -por-parte -del-onac. 
147 Online information from the Colombian Metrology Network, viewed at: 
http://rcm.gov.co/index.php/normatividad . WT/TPR/S/372 • 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 National 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 health 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 ord er 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 a nd 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, w hile 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 modification 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 maintain s 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 supplemented 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 proce ssing 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 manag e 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 competence by putting 
forward prop osals 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 monitors the quality and safety of t he 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 procedures relating to sanitary regis trations. 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 
national 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 Food Safety Policy for the syste m 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/Fun ciones.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, viewed at: https://www.invima.gov.co/nuestra -
entidad/funciones/37 -nuestra -entidad/funciones/72 -generales.html . WT/TPR/S/372 • 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 measures: 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 production), Law No 100 1993 
establ ishing 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 Commun ity 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(proceedings of the 
fifth meeting of gov ernment 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 veterina ry 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 an d 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 products.  
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 additions to those notifications. Du ring 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; however, measures 
which predat e 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/fr om Colombia. SISPAP 
enables the importer/exporter to familiarize himself in advance with the ICA's import/export 
phytosanitary and zoosanitary requirements. It is also possible to file online applications to obtain 
the documents for each of the requisite p rocedures, and to monitor the status of import/export 
applications, modify them, and pay for these procedures electronically.  
3.217.   Resolution No.  9.942 of 8  August  2016 regulates requests for pest and disease risk 
analyses in the process of importation into Col ombia, and defines the situations that warrant a risk 
analysis. These analyses are done before importing items of animal or plant origin in order to 
assess the probability of the entry, establishment and spread of pests or diseases in Colombia and WT/TPR/S/372 • Colombia  
 
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  justify the introduction of SPS measures so as to allow, limit or prohibit importation. According to 
ICA information, the risk analyses 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 Colomb ia; (ii) when there is a change in the sanitary or phytosanitary 
status of a country or region of origin; (iii) when new information emerges about a disease or 
pest; (iv) when a country or zone is required to demonstrate that an export product does not pos e 
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 veterinary biologics  and veterinary biological products . The ICA also issues free sale 
certificates for the purposes of domestic and export marketing, and VAT  exclusion certificates for 
biological or veterinary medicin es. It also issues the Biosafety Level 3 Agriculture certification, 
which is required for laboratories handling the live foot -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 meal, 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 animal 
origin, veterinary biological products, biological reagents for veterinary diagnosis and 
micro -organisms for the production of veter inary 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 represent an insignificant risk for the spread 
of diseases that might affect the country's animal population. The ICA issues resolutions sp ecifying 
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 specially equipped for the purpose authorized by the ICA. Both 
                                                
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 health status to some regions of a country  or stepping up efforts, 
with limited resources, to contain, c ontrol and eradicate a disease. Online information from the ICA, viewed at: 
http://www.ica.gov.co/getdoc/fb18dace -21dc-41d1-9733-80057e0f95e6/Evalu acion-del-Riesgo.aspx . 
153 In September  2017 there were two certified laboratories: Limor de Colombia S.A and Empresa 
Colombiana de Productos Veterinarios VECOL S.A. Online information from the ICA, viewed at: 
https://www.ica.gov.co/getdoc/2cf51f62 -66db-4189-95b9-b5202a853a96/Certificacion -de-bioseguridad --
Nivel-3.aspx . 
154 The trading partners with which Colombia has agreed sanitary re quirements for the admissibility of 
livestock products are: Angola; Aruba; Bolivia (Plurinational State of); Canada; Chile; Costa Rica; Cuba; 
Curaçao; Dominican Republic; Ecuador; Egypt; Eurasian Customs Union (Russia, Kazakhstan and Belarus);  
Honduras; H ong Kong, China; Iraq; Georgia; Jordan; Lebanon; Libya; Mexico; Panama; Paraguay; Peru;  
United Arab Emirates; United States; and Venezuela (Bolivarian Rep. of).  
155 The list of animal products and products of animal origin that do not require the DoZa to en ter 
Colombia is available on the ICA website. These are usually fish, shellfish and fishery products, but also include 
products such as ambergris, antisera, wool tops, hides, cultures of micro -organisms for non -veterinarian use, 
waste of wool, wool and fin e 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 diagn osis 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 • Colombia  
 
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  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, all imported livestock shipments must be inspected at the point of 
entry. The Health Inspection Certificate (CIS) is issued once the in spection process is complete. 
Each CIS covers the imports contemplated in a single DoZa.156 The ICA veterinarian indicates on 
the CIS whether or not the product can be authorized from a sanitary viewpoint and, if so, under 
what conditions. In some cases, aut horization may be given for the imported products to circulate 
freely in the country, or to circulate after a period in quarantine 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 befor e authorization is granted. 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 
improvemen t, 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, p roducing animal 
feed, processing 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 document s, which include: (a) the 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 veter inary 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, otherwise 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 gene tic 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 reshipped 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 de termine 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 products 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 count ry 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 Division 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.  
                                                
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 mea ns that it cannot be used for a new shipment.  
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 • Colombia  
 
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  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 importer may apply to the MinCIT for import registrat ion. The DRFI is 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 phytosan itary certificate 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 inwa rd 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 agr o-industrial purposes.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 t he 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 Moni toring 
Laboratory, 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, testing 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 genetically 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 products 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 qual ity standards established 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 inputs 
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 lab oratory analysis 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 in 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 
product s 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 -modif ied soya seed for sowing, 
celery, spinach, chard and avocado, among others.  
                                                
158 Law N o. 740 of 2002 and Decree No.  4.525 of 2005.  
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 
produc tion 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 the 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 • Colombia  
 
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  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 President), 
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, 
slaughterhouses, milk collection centres and milk pr ocessing 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 rene wal, 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 borde r crossings, 
without 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 pro cessed food, INVIMA 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 documentary, 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 validi ty of the sanitary 
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 and 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 f oodstuffs and the 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 th e 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 imported must have the registration, permit or 
health notification issued by INVIMA; (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 o rigin. 
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, takin g samples and 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 a s 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 Resid ues 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 Surveill ance Control System (SIVICOS), a computer application 
that enables users to submit requests and make online payments, and through which officials can WT/TPR/S/372 • Colombia  
 
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  issue certificates. Moreover, SIVICOS allows INVIMA inspectors to log in and view information 
concerning i mports and exports.  
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 in crease 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 competiti on rules.161 The SIC 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 projects (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 
whole". Law No . 1.340 provides that the agriculture and livestock sector should be considered a 
                                                
160 Decree No.  210 of 2003.  
161 Law No.  1.340 of 2009 assigned this function to the SIC.  
162 The Special Administrative 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 Art icle 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 (2 012), Trade Policy Review of Colombia , Geneva.  WT/TPR/S/372 • Colombia  
 
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  "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 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 c onditions 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.  
                                                
167 Article 5 of Law No.  1.340 of 2009.  
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 10 0,000 to 60,000 SMMLVs.  WT/TPR/S/372 • Colombia  
 
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  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, 
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 only 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 evidence 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 Superintendent 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 t he Superintendent 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 party 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 en ter an application 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 clos ed 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 guarantees were offered. The practices have 
not recurred since then.  
3.252.   The SIC has the power to impose, for each violation and on each infringer, fines of up to 
100,000 SMMLVs or up to 150 % of the profits derived from the conduct of the infringer, whiche ver 
                                                
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, legal 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 allowe d by the SIC for 
seeking or furnishing evidence.  WT/TPR/S/372 • Colombia  
 
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  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 equivalent of 2,000 SMMLVs at the time of im position 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. Benefi ts may 
be granted 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, r estaurants, bars and similar businesses  
Ministry of Trade, Industry and 
Tourism  Public performances, some manufactures and non -commercial services 
not covered by other entities  
                                                
176 Articles 25 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 • Colombia  
 
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  Body  Product or service  
Sectoral regulatory commissions  Household public services: water supply, sew erage 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 fix 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 methodo logy (including profit 
margins, for example) to enable producers and distributors 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 just ify any price changes to the competent authority, 
which may reject the change. 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 is 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 accep ting the SIC recommendation on the 
proposed price regulation. The authorities 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 med ical devices; water supply, sewerage and sanitation; natural gas 
and electricity.  
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 controls 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 value 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 p etroleum 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 maintained 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 Medic al Devices (CNPMD) of the Ministry of Health and Social Welfare 
(MSPS) prepared 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. CNPMD 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 subject 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 inter est declaration and the price control entailed by these 
                                                
178 Law No.  81 of 23  December  1988.  
179 Online information from t he 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 • Colombia  
 
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  measures caused concern 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 used 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 v arious laws and decrees183, Colombia's territorial 
subdivisions, known as departments, 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 thi s framework, departmental distilleries produce alcoholic beverages for 
consumption 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 of 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 departme nts 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 N o. 1.816 sets out the requirements and procedures for permit 
applications and the issuance of permits and for the conclusion of contracts. It is expressly 
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 sp irits 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 paid by producers and importers who have been awarded contracts or granted a 
permit.185 Operating fees on p roduction are set through a public tendering procedure, under which 
the Departmental Assembly is able to set their level as a minimum percentage of sales. 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 contracts ranges from five to ten years and they are 
renewable once for up to half of the initial duratio n, 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 equity 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 stake, with assets worth Col$61.3  billion (approximately US$20.3  million) 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 • Colombia  
 
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  3.267.   The sectors in which the activities of national State -owned enterprises are mainly 
concentrated are hydrocarbons, 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 
hydrocarbons sector, followed by Interconexión Eléctrica S.A. E.S.P . (ISA). These are the only 
two nationa l 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). EICEs 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 exceptions (for example, regarding their debt capacity and 
budget management). State -owned enterprises are regulate d 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 of State -owned 
enterprises to generate economic and social value, given the low standards of corporate 
governa nce 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 address the 
recommendations of the OECD, with a view to joining that organization.189 In November  2015, the 
Centr al Government published the General Policy on National State -owned Enterprises (CONPES 
Document No.  3851) for the main purpose of progressing towards 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 highest 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 valu e. 
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) within the Ministry of Finance and 
Public Credit in order to centralize the functions of business ownership in th at 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 creation, in 2019, of a national body to act as owner of all State -owned enterprises. 
Other advances include the cr eation 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 • Colombia  
 
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  and monitor the management of State -owned enterprises, the preparation of a global strategy for 
determining which enterprises are strategically important to the State and which are not, a nd 
undertaking company reorganization processes or divesting unprofitable, non -strategic or high -risk 
assets.  
3.271.   Article 60 of the Constitution and Article 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 to Congress an asset disposal plan listing companies and equity stakes that could be 
privatized. There were fe w privatizations during the period of this review, but some of the 
enterprises disposed of were of high value. In January  2016, for example, the State sold its 
majority stake (57.6 %) in ISAGEN, the country's third largest electricity generator, for 
US$2,00 0 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 WT/TPR/S/372 • Colombia  
 
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  for example residential public utility service providers and other State -owned enterprises, are 
subject to special regimes, which generally 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 identify 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 
procur ement 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 foreig n 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 
satisfies 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 for eign 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 cont ract 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 cri teria 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 o ne 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 
                                                                                                                                                  
Judiciary and the Office of the Public Prosecutor ; the National Civil Status Registry and the National Electoral 
Council; State entities belonging to the supervisory bodies; the National Civil Ser vice 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 2013 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 
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 o f 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 services; procurement where the open te ndering 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 o f 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 and people with some 
degree of ex clusion; 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 • Colombia  
 
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  low-value amount, determined on the basis of its a nnual 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 th rough 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 
selecti on 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 
                                                
201 Article 2 of Law No 1.150 of 2007.  
202 The goods and services available in the Col ombian Government's E -Store may be viewed at: 
https://www.colombiacompra.gov.co/tienda -virtual -del-estado -colombiano . WT/TPR/S/372 • Colombia  
 
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  cumulative 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 
principle 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 services 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 regulati ons also provide for the granting 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 
                                                
203 Article 5 of Law No 1.150 of 2007.  
204 The points s ystem 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 Co merciales en Procesos de Contratación . Viewed at: 
https://www.colombiacompra.gov.co/sites/cce_public/files/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 und er a trade agreement.  WT/TPR/S/372 • Colombia  
 
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  the 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 ten dering, abridged selection or merit -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 the 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 contra cts will be executed. No 
data are 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 decision 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 ac tion. 
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 Comptroller 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 t he Public Prosecutor investigates practices relating to criminal 
activities, including 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 impris onment. 
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 officio  or at the request of 
                                                
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").  WT/TPR/S/372 • Colombia  
 
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  third parties.211 According to SIC data, 35 government procurement -related cases were 
investigated between 2012 and 2017.  
3.294.   Law No.  1.474 of 2011 pro vides for fines, terms of imprisonment and eight -year 
disqualification from contracting with State entities for persons engaging in practices of collusion in 
open tendering procedures, public auctions, abridged selection procedures or merit -based 
competiti ons. Disqualification from contracting with the State is for life in the case of natural 
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 thing s.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 commitmen ts it has entered into under trade agreements. The changes 
focused primarily on: adjusting the rules; optimizing the administration of intellectual property 
rights (IPR); facilitating and streamlining registration procedures; consolidating interinstitution al 
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 Co lombian 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 Orange 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 party to 13 instruments administered by the World Intellectual 
Property Organization (WIPO), three of which it joined during the review period, namely: the 
Protocol Relating t o the Madrid Agreement Concerning the International Registration of Marks; the 
Convention Relating to the Distribution of Program -Carrying Signals Transmitted by Satellite; and 
the Budapest Treaty on the International Recognition of the Deposit of Microorg anisms 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)  
                                                
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.  
212 Article 1 of Decree No.  1.474 of 2011, and Constitutional Court Ruling No.  C-630/12 of 2012.  WT/TPR/S/372 • Colombia  
 
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  Convention/treaty  Date of accession  
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)  
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 N o. 1.519 of 2012)  
Budapest Treaty on the International Recognition of the Deposit of 
Microorganisms for the Purposes of Patent Procedure  26 April 2016 (Law No.  1.515 of 2012)  
Source:  WTO Secretariat, on the basis of information from the Colombian authori ties. 
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 prope rty; 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 provides 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) Res olution No.  103.590 of 2015 regulates the procedure for registering security 
interests over industrial property rights. At August  2017, 277 such securities had been registered 
and 100 more were being processed. These figures show an emerging market in secu red 
transactions that provides new financing options.215 
3.300.   The institutions responsible for implementing 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 Property Administrative System, which consists of a set of policies, rules, 
programmes and institution s, both public and private, related with intellectual property. The CIPI 
is composed of 12 State entities with responsibilities relating to intellectual property, 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 responsible 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 
responsible for inspecting and monitoring the collecting societies. Its powers include making 
recomme ndations 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 handling 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, 
                                                
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 was 
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: Copyright, Industrial Property, Plant Varieties, Gene tic Resources and 
Traditional Knowledge, Education and Enforcement.  
217 The DNDA was established by Decree No.  2.014 of 1991.  WT/TPR/S/372 • Colombia  
 
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  slogans and logos, as well as appellations of origin. The Patents Bank promotes the use of new 
creations and patent documen ts 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 
productions and radio broadcasts  Lifetime + 80 years (natural person)  
50 years (legal perso n) Private use, current affairs, use for teaching 
purposes, right to quote and make ephemeral 
recordings  
Patents  
Any invention, whether of products 
or of processes, in 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 progra ms; 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 preserve plants or the 
environment; plants, animals; therapeutic or 
surgical methods; mathem atical, 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 violate 
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 th e public as to 
the geographical provenance, nature, mode of 
manufacture, or the quality, reputation or other 
characteristics of the products in question  
Industrial design  
Any particular new appearance of a 
product that results from any 
arrangement of li nes 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 product being thereby 
changed.  10 years from date of filing of the 
application; no n-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 ord er 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://w ww.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 • 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 constitutes 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 fr om 
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 conc erning the safety 
and effectiveness of an active 
ingredient which has not been 
included in pharmacological 
standards in Colombia and which has 
involved a considerable effort  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 from 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 bas is 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) exc eptions 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 protects 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, reproduction 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 protecti on 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 during 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 an d 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 economic rights. The Law on P ublic 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 • Colombia  
 
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  3.310.   Law No.  1.680 of 20  November  2013 introduced an exception to copyright in 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 and respect the author's mor al 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 their 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 DNDA 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 registered 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 a nd 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 (Articles 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 restricting unauthorized use and the removal o f 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 2012 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 pro vided 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 in dustrial 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 e xpansion 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 domestic level with regard to the protection of s pecific 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 • Colombia  
 
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  selling them to a third party that exploits the invention.225 The term of pro tection 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; 
mathematical methods; therapeutic and surgical me thods; 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 fol lowing 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 pate nts.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 ord er 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 procedure 
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 inte rest 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 
submitting comments. The ministry in questio n 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 compulsory 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 the invention, correction of omissions in th e 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 SIC in issuing patents, except in the case o f 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 
authentication of the documents, which has s peeded 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); between 2012 and 
2017, 79 % of applications we re submitted through the PCT.  
                                                
225 Online information from the SIC, viewed at: http://www.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 -comerc io-
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 exa mination of the application was made, whichever is later. Decree No.  1.873 of 
2014. Viewed at: http://www.wipo.int/edocs/lexdocs/laws/es/co/co108es.pdf . WT/TPR/S/372 • 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 and speeds up patent 
applications, supportin g 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 end 2017, Colombia had not yet enacted legisl ation 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 include any sign capable of distinguishing prod ucts 
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 which 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 respo nsible 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 on which they are 
awarded, renewable for fur ther 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 countries 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 Ni ce International Classification through the filing of a single administrative 
application. Since then there have been no changes in the substantive rules governing trademarks, 
apart from some provisions on enforcement relating to trademark rights (paragrap h 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, righ ts 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 geographical 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 appellation s 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 questio n. 
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 private entities that 
represent the persons enga ged 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 • 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 c onditions 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 agreements (with Mexico, EFTA and the United S tates) 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 p arties 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 de sign 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 enable 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 des ign 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 prote ction 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 by 
Decree No.  533 of 1994, as amended by Dec ree 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, Colombia 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 Varieties.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 
regime al lows 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 
                                                
233 Online information 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 m ay 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 • Colombia  
 
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  Colombia regardless of whether the variety concerned has alr eady been registered in another 
country.  
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 INVIMA is the authority responsible for th e 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 
pharmaceutical products. Decree No.  727 of 2012 incr eased 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, Col ombia 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, su ch 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 prevalence of counterfeiting and piracy, includ ing 
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 ICA 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 powers 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 applications for the taking of extra -proced ural evidence have predominated (63 % of 
cases), followed by the hearing of actual claims (34 %) and applications for extra -procedural 
precautionary measures (2 %). 
                                                
238 This information is available 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 -
asociados /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/basedo c/ley_1564_2012.html . WT/TPR/S/372 • Colombia  
 
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  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 
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 
priority 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 in fringement 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 Coex istence 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 i mpose fines on establishments that cannot 
produce such proof.244 
                                                
241 Article 3  of Law No.  1.648 of 2013 . Viewed at: 
http://www.sic.gov.co/sites/default/fi les/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.saludcapital.go v.co/img_upload/03d591f205ab80e521292987c313699c/ley_1801_2016.pdf . WT/TPR/S/372 • Colombia  
 
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  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 criminal 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 
 
 
 
 
                                                
245 Law No.  1.801 of 2016. Viewed at: 
http://es.presidencia.gov.co/normati va/normativa/LEY%201826%20DEL%2012%20DE%20ENERO%20DE%20
2017.pdf . WT/TPR/S/372 • 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 a nd 
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 people 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 (Table 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, agricultura l 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,  coordinating 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 proce sses, 
based on decentralization, consultation and participation, that will improve the level and quality of 
life of the population. The policies elaborated by the MADR are aligned with macroeconomic policy. 
Agricultural health and food safety policy falls under the responsibility of the Colombian 
Agricultural Institute (ICA).  
                                                
1 MADR (2017), Memorias al Congreso de la República, 2016 -2017. Viewed at: 
https://www.minagricultura.gov.co/planeacion -control -
gestion/Gestin/MEMOR IAS%20AL%20CONGRESO%20DE%20LA%20REPUBLICA/Memorias_al_Congreso_de_la
_Republica_%202016_2017.pdf . WT/TPR/S/372 • Colombia  
 
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 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  principal 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 i n 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 programm e; 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 for each crop, seeking to expand the area devoted to the productio n 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 sector (see infra). 
4.7.  The main legislation in the agricultural secto r 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 
provisions; and Law No.  160 of 1994, creating the National System of Ag rarian 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 the Comprehensive 
Rural Reform.  
4.8.  Colombia joined the OECD Committe e 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 in novation system; and encourage further integration into international agro -food 
markets. The authorities indicated that the policies under Colombia Siembra  have been tailored 
towards meeting those recommendations and that work is moreover under way on inst itutional 
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 De velopment 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 strength en 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 and 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 qualification of fishermen 
and 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 aquaculture policy geared to improving competiveness, which the 
                                                
2 Information provided by the authorities, and online information from Colombia Siembra , viewed at: 
https://www.minagricultura.gov.co/Colombia -Siembra/Paginas/default.aspx . WT/TPR/S/372 • Colombia  
 
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  MADR int ends to achieve through: reducing operating costs for fishing vessels; diversifying fishing; 
modernizing the fishing fleet; promoting the consumption of fish; improving productivity and 
competitiveness in aquaculture; and diversifying and upgrading product ion 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 ag ricultural 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 highest 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 thei r 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, concentrated).  
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 app lying 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 pro ducts 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 substitute 
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 ref erence 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 ex ternal 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  equivalents 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 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 ani mal origin (42.7%), 
                                                
3 Online informa tion from the Andean Community,  viewed at: 
http://www.comunidadandina.o rg/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 frei ght costs corresponding to 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 betw een the CET for the marker 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] = whichever 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 • Colombia  
 
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 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 t he 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 th an 
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 example a 
series of import requirements, including licensing, approva l, 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 2015 reveals that Colombia's agricultural Producer Support 
Estima te (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 (on import).8 Another recent study shows that, looking at the peri od 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 i ncluded) 
(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 provide 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 to producers and consumers, as well as preventing 
and managing an imal 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 addition to promoting agricultural exports. The resources for the se 
funds come from parafiscal charges: these are charges levied on producers which remain outside 
                                                
7 WTO document G/AG/N/COL/50  of 4 May 2016.  
8 OECD (2015), Review of Agricultural Policies: Colombia 2015 . Viewed at: https://read.oecd -
ilibrary.org /agriculture -and-food/oecd -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 docu ment 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 • Colombia  
 
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  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 fo r 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 the methodology for 
calculating a reference price based on the mo st 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 receive compensation from the FEP when the price is above 
the ref erence 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 parafiscal 
account to which Colombian coffee growers contribute in ord er 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 Gro wers 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 
Contract (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 Decembe r 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, the 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 e xpired in 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 i ncentive 
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 exchang e-rate coverage incentive 
programme for producers of modified maize  was put in place. The programme enabled producers 
                                                
13 The FEP for cotton, which is managed by the Colombian Cotton Confederation (CONALGODON); the 
FEP for centrifugal sugars , molasses obtained by extracting 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 products  
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 crop s were entitled to a subsidy 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%20CONGRESO%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 • Colombia  
 
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 to protect themselves against a fall in international prices and exchange -rate variations, with the 
aim of fostering stability in producti on and earnings. 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,  specifically 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 op tion 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 price 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 participants 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. Beneficia ries 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 ne w projects 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 
Implementati on of new 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 Aquaculture 
(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 Capacity -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, elem ents 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 sma ll and medium -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 Technical 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 ass ociations. 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 R ural Land 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 transferre d to the ANT, which has been moving forward with its implementation since 
August  2016.  
                                                
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/planeacion -control -
gestion/Gestin/MEMORIAS%20AL%20CONGRESO%20DE%20LA%20REPUBLICA/Memorias_al_Congreso_de_la
_Republica_%202016 _2017.pdf . WT/TPR/S/372 • Colombia  
 
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  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 export potential. Its aim is to succeed in leveraging Col$8 trillion of loans under the 
terms 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 Colombia 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 poli cy document, 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 pro jects 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 
producers; 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, p ulses, 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 agricultural 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 rate. 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%.  
                                                
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 • Colombia  
 
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 4.35.   The General LEC is a special line of credit for subsidized loans, which consists in granting a 
subsidy on t he interest rate on loans taken out with financial 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 
two headings or purposes: coffee 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 the 
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 r atio of the overall credit line was 83.8% of the 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 rur al 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 principal 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 sowin g of 
medium -yield crops.20 Small producers (up to 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 u p 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 determi ned 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 represents 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%) w as 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 S ector (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 rura l loans, and finances the working capital and investment 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 ag ricultural, 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 o r legal persons 
classified and defined by FINAGRO 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. 
                                                
20 The ICR may o nly 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 an d 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/planeacion -control -
gestion/Gestin/MEMOR IAS%20AL%20CONGRESO%20DE%20LA%20REPUBLICA/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 • Colombia  
 
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  To be entitled to FINAGRO loans, 75% of the applicant's total assets must be invested in the 
agricultural sector, or tw o thirds of their income must stem from the sector.  
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 sm all 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 poi nts, depending on the category of producer (Table 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 Agricultural 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 
                                                
23 FINAGRO (2017), Portafolio de Servicios , August  2017. Viewed at: 
https://www.finag ro.com.co/sites/default/files/portafolio_finagro_agosto_2017_2.pdf . WT/TPR/S/372 • Colombia  
 
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 financed 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 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 resourc es granted through eligible financial institutions, 
cooperatives and associations 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 t he total funds placed, Col$2.01 trillion, or 19.3% of the total, 
representing 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 FINAGRO 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% were 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% of 
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 ag ricultural 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 th e 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 commodities 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 collater al, or if the latter is insufficient or 
unsuitable. For small enterprises, 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, cove rage can reach 80%, whereas the maximum coverage for integration 
projects is 70%, and 50% for micro -loans.28 
                                                
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 purpo ses of Law No.  1.731 of 2014, rural 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 operating 
in the rural sector.  
26 Online information from  FINAGRO, viewed at: 
https://www.finagro.com.co/sites/default/files/por_linea_a_o ctubre_2017.pdf . 
27 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 . 
28 Online information from  FINAGRO, viewed at https://www.finagro.com.co/productos -y-servicios/FAG . WT/TPR/S/372 • Colombia  
 
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  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 trillion, 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 dur ing that period came to Col$2.1 trillion, or 75.9% of the loans 
guaranteed (Table 4.4). The Fund endorsed 63.66% of the operations recorded in 2017 and 18.8% 
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 Guara ntees granted by the FAG, 2012 -2016  
 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 2014, 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 crisis 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 exp anded 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 on 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 export able 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 in surance  
4.49.   Agricultural insurance is a tool to promote and protect production in the 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, 
                                                
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 asset s not 
exceeding 700 SMLMVs. 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 . WT/TPR/S/372 • Colombia  
 
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 infestations 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).  
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 Government subsidized 
agricultural insurance, covering between 60% and 80% of the policy value. The baseli ne 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 a ccordance with the provisions of Decree No.  2.371 of 2015, determines 
annually the agricultural insurance premium subsidy, the insurance eligibility conditions, 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 producer, 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 
                                                
30 The Agricultural insurance was instituted in 1993 by L aw No.  69, managed by the National 
Agricultural Credit Commission.  
31 Priority products under the Colombia Siembra  programme are: modified maize, soya beans, 
commercial forestry plantations, rubber, silvopastoral systems, rice, barley, oil palm, cocoa, avoc ado, mango, 
pineapple, yellow 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 goose berries, bananito, cocoa, flowers, 
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 of 30  July 2013, and online information from the 
CREG, viewed at: http://www.creg.gov.co/index.php/es/s ectores/2015 -02-04-20-43-06/estructura -
combustibles . WT/TPR/S/372 • 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 secto r, a responsibility it then delegates to the National 
Mining Agency (ANM) and National Hydrocarbons Agency (ANH) (Chart 4.1).  
Box 4.1 Objectives of energy policy  
The objectives of Colombia's energy policy are co ntained in a specific document, but are identified in 
successive national development plans. The current 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 hydrocarbon 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 o f 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 t o 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 VAT, 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 • Colombia  
 
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 4.56.   Since 2012, a new system has been put in place t o 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 co nsidering 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 and  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 Cod e, 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 stra tegic 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 throug h 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 st ill 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 exp orted 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 
                                                
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 est adístico de minas y energía 2012 -2016. Viewed at: 
http://www1.upme.gov.co/PromocionSector/SeccionesInteres/Documents/Boletines/Bo letin_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/radicador -web. Although the 
application process has been streamlined with the introduction of the single window, supporting documents still 
have to be submitted to o ne of the ANM's regional service points. Online information from the ANM, viewed at: 
https://www.anm.gov.co/sites/default/files/Documentos/abeceradicadorw eb-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 • Colombia  
 
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  the higher expor t 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 amou nt 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 
price 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 b y 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 Comp any, 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 awa rd 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) pub lic 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 c losure of the border with the Bolivarian 
Republic of Venezuela, which caused the export 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 Parties.  WT/TPR/S/372 • 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 Production.  
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 autho rities 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 f or 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 ag reements (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 contrac tor 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 activit ies, 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 underta ke 
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 be tween 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 d omestic 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. Th e 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 Decision 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  December  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 Regulator y Decree No.  1.073 of 26  May 2015.  WT/TPR/S/372 • 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 distribution 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: 
https://energycharter.org/fileadmin/DocumentsMedia/Other_Publications/20160729 -
Colombia_Energy_Investment_Report.pdf . WT/TPR/S/372 • 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 
                                                
69 For m ore 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 per centADa_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 22  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 • Colombia  
 
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  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 
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 Available at: http://www.colombiacompetitiva.gov.co/prensa/informes/Conpes -3866-de-2016-
Politica -desarro llo-productivo.pdf . 
77 CONPES 3866, National Productive Development Policy, of 8  August  2016. Viewed at: 
http://www.colombiacompetit iva.gov.co/prensa/informes/Conpes -3866-de-2016-Politica -desarrollo -
productivo.pdf . 
78 ISIC Rev.3, Divisions  15 to 37.  WT/TPR/S/372 • 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 • Colombia  
 
- 140 - 
 
  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.secretariasenado.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://www.bbvaresearch.com/wp -
content/uploads/2015/09/Digital_Economy_Outlook_sep15 -Cap4.p df. 
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 • 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 conglomerates 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 • 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 20 12 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 financial 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 co mpanies 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=publicaciones&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/HomeMi nhacienda/ShowProperty;jsessionid=nSOyZd9ECE1wcOZ -
te6ZncRcnBtJeVcXjTv_Gce55RoMsC49W7hk! -87823345?nodeId=%2FOCS%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_6XanxjAG okJsVNVPtasR4sotd
JIO_wZZbf6n3gNCQWxXbO7On! -
16024601?nodeId=%2FOCS%2FMIG_5942624.PDF%2F%2FidcPrimaryFile&revision=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 • Colombia  
 
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 4.98.   Mergers o f 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 de graded 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  be 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 rega rd, 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 pai d 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  there 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$12  million  FOGACOOP Resolution 
No. 031 of 2010, as amended 
by Resolution No.  16 of 
29 July 2015  
Source:  WTO Secretariat.  
4.101.   The financial sector continues to be one of the most dynamic sectors of the economy. The 
ongoing increase in total assets and loan portfolios since 2012 has allowed the sector to achieve 
higher financial deepening indices in relation to GDP (Table 4.14).  
Table 4.14 Colombian financial system indicators, December  2012 to 2017  
 Dec-2012  Dec -2013  Dec -2014  Dec -2015  Dec -2016  Dec -2017  
Total assets  (Col$ 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 Republic, 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 • 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 ma rket, 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 (updated). Viewed at: 
http://www.ban rep.gov.co/sites/default/files/reglamentacion/archivos/re_8_2000_compendio.pdf . 
100 BRC (2017), Financial Stability Report , March  2017. Viewed at: 
http://w ww.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 • 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 underpinned 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 insurance 
coverage in Co lombia 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 allowed. Colombian resid ents 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 
                                                
102 The current bank interest rate is set on the basis of the information supplied by the financial 
institutions for the previous mont h. Bank interest rates are posted at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publi caciones&lTipo=publicaciones&lFuncion=load
ContenidoPublicacion&id=10829 . Article 884 of the Commercial Code, Single Decree 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 39 -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 • Colombia  
 
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  segments, 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 ano ther 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 the 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, except for insurance comp anies 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 ranges 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 authorization 
must be obtained to o pen 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 fil ed 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 wer e 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 trill ion 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 for 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 (density 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=lo ad
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 Sup erfinanciera, 
viewed  at: 
https://www.superfinanciera.gov.co/jsp/loader.jsf?lServicio=Publicaciones&lTip o=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 FASE COLDA, viewed at: http://www.fasecolda.com/index.php?cID=2040 . WT/TPR/S/372 • 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 the 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 sup ervised 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 investors 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 Exchange (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 pa rticipates 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 transact ions 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 t rillion at 
31 December  2017, followed by: Banco de Bogotá, 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 Holdi ng, 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 securitie s 
market and give approval or recognition that they fulfil 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 discharged 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 Decree No.  3960 of 
2010 and by Decree No.  3886 of 2009, part ially 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 -industry 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 WT/TPR/S/372 • Colombia  
 
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  ongoing inspection, control and monitoring of compliance with th e provisions regulating the 
securities market, setting 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 ru les in regard to persons subject to its ongoing inspection 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 Securities 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 regulatio ns.114 
4.121.   Superfinanciera facilitates the delivery of information 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 c ategories and 
types of securities, as well as securities 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 inspec tion and monitoring by Superfinanciera, except 
issuers 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 tr easury 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 Decree 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 automati c 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 shar eholders 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 transferr ed 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.  
                                                                                                                                                  
managers; stockbrokers; independent securities brokers; mutual investment funds with as sets of 
4,000  SMMLVs or more; guarantee funds; investment managers; securitization companies; and securities 
rating companies.  
114 These m easures 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 ensu re 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_Merca do_Valores?com.tibco.ps.pagesvc.acti
on=updateRenderState&rp.currentDocumentID= -
7ca0c036_147b6b20b27_5e970a0a600b&rp.revisionNumber=1&rp.attachmentPropertyName=Attachment&co
m.tibco.ps.pagesvc.targetPage=1f9a1c33_132040fa022_ -
78750a0a600b&com.tibco.ps.pagesv c.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, assess and manage the risks inherent in any investment dec ision. 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 inv estment 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 • Colombia  
 
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 4.124.   Derivatives markets also operate in Colombia, which are divided 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 regard to the characteristics and regulation of the various contracts that may be 
structured and t ransacted. 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" component 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 instruments, trea ting 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). Th is 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 secto r 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 Supe rvisory 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 believe i t would also be 
necessary to establish a multisectoral committee to coordinate acti ons on developing the 
digital  economy.  
                                                
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.currentDocumentID= -
7ca0c036_147b6b20b27_5e970a0a600b&rp.revisionNum ber=1&rp.attachmentPropertyName=Attachment&co
m.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 ren ewal 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 periodic 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 • Colombia  
 
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  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 usher in wide spread 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 a re 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 100,000 users h ave 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 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 without the pr esence 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 restriction s 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 
approval 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 provi ders 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 
                                                
121 OECD (2014), OECD Rev iew of Telecommunication Policy and Regulation in Colombia . Viewed at: 
https://www.oecd -ilibrary.org/science -and-technology/oecd -review -of-telecommunication -policy -and-
regulation -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/604/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 i n Article 68 of Law No.  1.341 of 2009.  
126 The ANTV assigns frequencies allocated for the operation of television services.  
127 The period may be shortened for reasons of public interest, spectrum refarming or compliance with 
international rules.  WT/TPR/S/372 • Colombia  
 
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 can be assigned directly, when servic e 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 with a domin ant 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 market 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 of users a nd volume of traffic and income) or market 
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 regulation 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 
                                                
128 Single Regu latory 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) o f a general nature issued by the CRC.  
130 CRC Resolution No.  5.050 of 10  November  2016.  
131 Online information from the CRC, viewed at: https://www.crcom.gov.co/es/noticia/crc -promueve -
reducci -n-de-tarifas -en-servicios -de-telecomunicaciones -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 updating 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.  WT/TPR/S/372 • Colombia  
 
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  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 use r 
is granted a 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 competitors. Lease contracts may inc lude 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 price 
index.139 The amount of con sideration 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 consideration is 2.2% of their gross quart erly 
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 considerat ions 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 consider ations 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 that 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 service.141 The 
excise tax was alr eady 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 s ervices, 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 telephone 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) and 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 
                                                
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 disp ute. 
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.  
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); online 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 • Colombia  
 
- 153 - 
 
 
 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 (Chart 4.3).  
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 Decree 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, saf ety 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).  
                                                
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 • Colombia  
 
- 154 - 
 
  4.145.   The main entities in the sector are the Ministry 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 coordinating the determination of ai r policy with MinTransporte and conducting 
negotiations on 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, Port ugal, 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 free dom 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 United States (which fully entere d 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 authorities, to da te 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 holdin gs 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 Colombians. This obligation is waived when the airline's cou ntry 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 have to 
be of Colombian nationality, as well as the ca ptain 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 princ iple 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 "formally" authorized by Aerocivil. The 
application for auth orization 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 example the number of charter flights on the same rou te may be 
                                                
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 Commercial Code.  WT/TPR/S/372 • Colombia  
 
- 155 - 
 
 
 limited.147 The authorization to provide non -scheduled services is granted for the period covering 
provision of the service and is not transferable.  
4.150.   Colombian airlines may operate foreign aircraft, as long as their certificate of registration 
was i ssued 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 certain 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 i ssue 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 Colombian residents. However, some passengers 
may be exempte d 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 include it in the ticket price. Previously, Aerocivil us ed 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 Aerocivil  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 can 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 pub lic 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. Air  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, ow ns 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 In frastructure 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 
                                                
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 . 
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_Gener al_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.inviertaencolombia.com.co/zonas -
francas -y-otros-incenti vos/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.  WT/TPR/S/372 • Colombia  
 
- 156 - 
 
  15 and 25 years for the co ntracts 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 airport s 
takes different forms: it may be a percentage of the concession holder's gross income, or a 
flat-rate contractual value plus a variable amount based on gross income. The concept of economic 
consideration does not feature in new contracts, where an expect ed 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 c oncession 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 airp ort 
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 Aerocivil,  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 o f 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 capacity 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.  
                                                
155 Law No.  1.508 of 10  January  2012.  
156 Online information from the ANI, viewed at: https://www.ani.gov.co/modo -aeropuertos . 
157 Article 19 of Aerocivil Resolution No.  504 of 27  February  2017.  
158 Online inf ormation 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 • Colombia  
 
- 157 - 
 
 
 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 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 transporting 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 authorization 
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 on ly be registered by the 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 
permanent 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 re gistered 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 national 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 con struction, 
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.  
                                                
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 Regulatory Decree No.  1.079 of 26  May 2015.  
164 Comm unication 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 • Colombia  
 
- 158 - 
 
  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 por t companies. The plan 
has to be approved by the National Economic and Social Policy Council (CONPES) and then 
adopted 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, Buenaventura, 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"). Wit h a view to strengthening port activities, the 
procedures for granting 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 simil ar or longer period of time.167 As at 2017, con cessions had been granted 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 Plan s. 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 l onger 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 vess els 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 (Supertranspo rte, 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" calcul ated for each port area. Tariffs exceeding the "competitive tariff" 
by 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 
                                                
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_con cesiones_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/apc -aa-files/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 of 1996.  WT/TPR/S/372 • Colombia  
 
- 159 - 
 
 
 4.173.   Port companies may supply port services 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 foreign vessel for six months and may be extended up to a maximum 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 Colombi a 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, 2012 -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 Single 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 set out in the (four -year) Tourism Sector Plans (PST). Th e 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 well 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 Stat e 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 Register (RNT), which is administered by the chambers of 
comm erce. 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 against 30 days prior to 2017) and has to be renewed eve ry year.178 Renewal may be 
contingent on fulfilling certain conditions: for example, the authorities specify that accommodation 
                                                
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_transporte . 
175 Decree No.  1.591 of 30  July 2013 and Decree No.  1.873 of 20  September  2013.  
176 The Tou rism Sector Plan may be viewed at: 
http://www.mincit.gov.co/minturismo/publicaciones/30661/plan_sectorial_de_turismo_2014_ -_2018 . 
177 See: http://rnt.confecamaras.co . 
178 Single Regulatory Decree No.  1074 of 26  May 2016, as amended by Decree No.  229 of 
14 February  2017.  WT/TPR/S/372 • Colombia  
 
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  establishments need to meet the sector's technical standards. Tourism service providers in the 
department of the San Andrés, Provi dencia and Santa Catalina Archipelago are not covered by the 
RNT, but have to register with the Tourism Secretariat of the corresponding department to obtain 
a permit, in lieu of the registration certificate.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 
non-scheduled flights are exempt. The amount of the touri sm 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 ye ars) 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; this 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 . Moreover, 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 project s had been carried out.  
4.180.   The tourism sector generated income of US$4,307  million as at the third quarter of 2017. 
The number of visitors grew from 3.5 to 5.8  million between 2012 and 2017 (Table 4.21), which 
according to the authorities places Colombia amon g the five most visited countries in the 
Americas. The increase in the number of visitors can be explained by better air connections and 
the efforts deployed to promote and diversify the tourism offering.  
Table 4.21 Tourism sector indicators, 2012 -2017  
 2012  2013  2014  2015  2016  2017  
Visitors (millions)  3.5 3.7 4.2 4.4 5.1 5.8 
Foreign exchange earnings (US$  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 are 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.mincit.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 • 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 • 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 54,036 44,831 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 
19 - Arms and ammunition; parts and accessories thereof  0.1 0.1 0.2 0.1 0.1 0.1 WT/TPR/S/372 • Colombia  
 
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 Description  2012  2013  2014  2015  2016  2017  
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 • 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 • 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 • 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  
Article 8.2( b)  Changes in laws/regulations and 
administrative arrangements  Ad hoc  G/LIC/N/1/COL/3, 04/10/2013  WT/TPR/S/372 • Colombia  
 
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 Agreement  Description  Frequency  WTO document (most recent if 
submitted regularly )  
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 • Colombia  
 
- 168 - 
 
  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 • Colombia  
 
- 169 - 
 
 
 Table A4. 1 Tariff lines subject to pref erential 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 . 
__________