WT/DS461/3  
20 August 2013  
(13-4476)  Page: 1/3  
 Original: Spanish  
 
  COLOMBIA – MEASURES RELA TING TO THE IMPORTATION 
OF TEXTILES, APPAREL AND FOOTWEAR 
REQUEST FOR THE ESTABLISHMEN T OF A PANEL BY PANAMA 
The following communication, dated 19 August 201 3, from the delegation of Panama to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU. 
 
_______________ 
  On 18 June 2013, Panama requested consultations with Colombia pursuant to Article 4 
of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) 
and Article XXII of the General Agreement on Tariffs and Trade 1994 (GATT 1994) with respect to 
the imposition by Colombia of a compound tariff affecting the importation of textiles, apparel and 
footwear from Panama. 
 
The consultations took place in Geneva on 24 July 2013. Unfortunately, these consultations 
failed to resolve the dispute. Consequently, pursuant to Articles 4.7 and 6 of the DSU 
and Article XXIII:2 of the GATT 1994, Panama requests the Dispute Settlement Body (DSB) 
to establish a panel in light of the measure and the legal complaint set out below.  
I. THE MEASURE AT ISSUE 
 
The measure at issue is a compound tariff that Colombia has imposed by Decree 
of the President of the Republic No. 074 of 23 January 2013 (Decree 074/2013), on the 
importation of certain textiles, apparel and footwear. The compound tariff has the following characteristics: 
 
 it is composed of an ad valorem levy, expressed as a percentage of the customs value 
of the goods, and a specific levy, expressed in units of currency per unit of measurement, applied simultaneously at the time of importation
1; 
 
 it is applied to the products classified in Chapters 61, 62, 63 and 64 ("affected 
products") of Colombia's Customs Tariff (Decree 4297/2011)2; 
 
 with respect to the products classified in Chapters 61, 62 and 63 and under 
heading 64.063, the amount is equal to 10% of the customs value of the goods plus 
five US dollars (US$) per gross kilo4; 
                                               
1 Articles 1 and 2 of Decree No. 0074/2013. The se cond preambular paragraph specifies that the 
measure takes the form of "mixed tariffs composed of an ad valorem  tariff and a specific tariff applied 
simultaneously to imports of  the [affected] products". 
2 The list of products covered by Colombia's Cust oms Tariff is contained in Decree of the President 
of the Republic No. 4297 of 26 December 2011 (Decree  4297/2011). According to the Customs Tariff nomenclature, Chapter 61 includes "articles of apparel and clothing accessories, knitted or crocheted"; 
Chapter 62 includes "articles of apparel and clothing  accessories not knitted and crocheted"; Chapter 63 
includes " other made up textile articles; sets; worn  clothing and worn textile articles"; and Chapter 64 
includes "footwear, gaiters and the like; parts of such articles". 
3 According to Decree 4297/2011, heading 64.06 includes "parts of footwear (including uppers whether 
or not attached to soles other than outer soles); re movable in-soles, heel cushions and similar articles; 
leggings and similar arti cles, and parts thereof". WT/DS461/3 
- 2 - 
   
 with respect to the products classified in Chapter 64, with the exception of 
heading 64.06, the amount is equal to 10% of the customs value of the goods, plus US$5 per pair
5; 
 
 it is in force for a period of one year, starting on 1 March 20136; 
 
 it does not apply to imports originating in the countries with which Colombia has free 
trade agreements in force7; 
 
 the specific levy of US$5 per gross kilo/pair is included in the tax base for the value 
added tax (VAT)8; 
 
 compliance is controlled in customs at the time of importation of the affected products, 
in accordance with Memorandum No. 000165 of 30 April 2013 from the Customs 
Management Department of the Directorate of National Taxes and Customs on "measures to control compliance with Decree  074 of 2013" (Memorandum No. 000165). 
 Panama understands that this measure is contained in the following rules: 
  (i) Decree 074/2013  
 (ii) Decree 4297/2011 of 26 December 2011 as regards the definition of the 
products covered by the nomenclature of Chapters 61, 62, 63 and 64 of the Colombian Customs Tariff; and 
 
 (iii) Memorandum No. 000165 as regards measures of compliance, customs control and 
administration under Decree 074/2013 and the compound tariff. 
 
II. LEGAL COMPLAINT  
The measure at issue is inconsistent with Colombia's obligations under the Agreement 
Establishing the World Trade Organization (WTO Agreement). In particular, the measure displays 
the following inconsistencies:  
(i) The compound tariff imposed by Colombia is an ordinary customs duty. 
The application of that compound tariff to imports of the affected products results in the imposition of levies, the percentage equivalent of which is greater than the bound 
ad valorem  tariff in Colombia's Schedule of Concessions. Consequently, in Panama's 
view, the measure in question is inconsistent with the first sentence of Article II:1(b) of the GATT 1994, since it subjects the affected products to ordinary customs duties in excess of the levels bound in Colombia's Schedule for such products. 
 
(ii) To the extent that the compound tariff imposed on the affected products exceeds the 
bound tariff levels established in Colombia's Schedule, Colombia accords to the 
commerce of other Members, in respect of the affected products, treatment less 
favourable than that provided for in its Schedule of Concessions, and therefore acts in a manner inconsistent with Article II:1(a) of the GATT 1994. 
 
(iii) If the specific levy of US$5 per gross kilo/pair were to be characterized as a duty or 
charge other than an ordinary customs duty, Panama maintains that the measure in question appears to be inconsistent with the second sentence of Article II:1(b) of 
the GATT 1994, since it was not in force at 15 April 1994
9, nor does it appear to have 
been required on that date by any mandatory provision of Colombian law. In addition, in this case, the measure appears to be inconsistent with paragraphs 1, 2, 3 and 4 
                                                                                                                                               
4 Articles 1 and 2 of Decree 074/2013. 
5 Article 2 of Decree 074/2013. 
6 Article 3 of Decree 074/2013, in relation to Article 5 of Decree No. 0074/2013. 
7 Article 3, paragraph 1 of Decree 074/2013. 
8 Article 3, paragraph 2 of Decree 074/2013. 
9 Relevant date for the recording of "other duties  or charges" in accordance with paragraph 2 of 
the Understanding on the Interpretation of Article II:1 (b) of the General Agreement on Tariffs and Trade 1994. WT/DS461/3 
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  of the Understanding on the Interpretation of Article II:1(b) of the General Agreement 
on Tariffs and Trade 1994, since Colombia did not record this levy in its Schedule of Concessions. 
 
(iv) In the alternative, if the specific levy of US$5 per gross kilo/pair were to be 
characterized as a duty or charge other than an import duty, which is imposed for services rendered upon importation, Panama maintains that the measure in question 
appears to be inconsistent with Article V III:1(a) of the GATT 1994, since the specific 
levy of US$5 per gross kilo/pair does not appear to be limited to the approximate cost of any type of services rendered and appears to represent an indirect protection to domestic products. 
 
(v) According to Memorandum No. 000165, the affected products are subject to a 
mandatory inclusion procedure at the time of their importation. In Panama's view, 
the administration of customs compliance and control of the compound tariff gives 
cause for serious concerns regarding its uniformity, impartiality and reasonableness within the meaning of Article X:3(a) of the GATT 1994. 
 
***** 
 
Panama has identified the rules which, in its view, underpin the measure in question. 
 
Nevertheless, this list is without prejudice to any other rules, administrative or legal 
decisions, acts, practices, guidance or guidelines issued by Colombia that may be relevant in 
examining this dispute. Accordingly, the scope of this panel request covers all the aforementioned 
rules as well as any possible amendments, extensions or additions where applicable.  
Given the inconsistencies described above, pursuant to Article 3.8 of the DSU, 
Panama considers that the measure at issue nullifies or impairs the advantages accruing to Panama under the provisions mentioned in this request.  
Panama requests that, pursuant to Article 6 of the DSU, the DSB establish a panel to 
examine this matter. Panama further requests that the panel be given the standard terms of reference provided for in Article 7.1 of the DSU. 
 
Panama asks that this request for the establishment of a panel be included in the agenda 
of the meeting scheduled for 30 August 2013. 
 
__________