WORLD TRADE  
ORGANIZATION  G/C/W/554 
12 May 2006 
 
 (06-2326) 
Council for Trade in Goods Original:   Spanish 
  
 
REPLIES TO THE QUESTIONS ADDRESSED TO COLOMBIA BY 
THE REPUBLIC OF PANAMA 
 
  The following communication, dated 9 May 2006, is being circulated at the request of the 
delegation of Colombia. 
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  Below are the answers to the questions posed  by Panama to Colombia on 11 April last. 
 Question No. 1
 
 
 We have heard that the National Customs and Excise Directorate (DIAN) of the Republic of 
Colombia is maintaining in force a number of resolutions applying "indicative prices" to certain 
goods originating in or importe d from Panama, China and oth er WTO Members. We would ask 
Colombia to clarify this information and give th e reasons and the basis in law for these resolutions. 
 Answer
: 
 1. Colombia's National Customs and Excise Director ate did set some indicative prices that are 
still in force. 
2. The indicative prices were established in keeping with the right conferred by WTO 
provisions, including the Agreement on Implemen tation of Article VII of the GATT 1994. 
3. The legal basis is Law No. 170 of 1994 whereby the Colombian Congress approved the 
Agreement Establishing the WTO. 
Question No. 2
 
 
 In this connection, we would like to know how Colombia reconciles the measures referred to 
above with its general national treatment and MFN ob ligations and the requirement to refrain from 
imposing discriminatory restrictions on imports from Panama and other WTO Members, when 
indicative prices are applied in particular instances . 
 
Answer : 
  Colombia applies these measure s to goods imports only when a risk of under-invoicing has 
been detected.  Question No. 3
 
 
 We would also like to know if Colombia curren tly has any legislation,  technical regulations, 
or measures of any other kind which provide for a list of ports of entry to the country's customs 
territory for certain types of goods.  If so, how woul d Colombia seek to ensure  the consistency of the G/C/W/554 
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  measures adopted against Panama and other trading  partners limiting access to ports for goods from 
our countries . 
 Answer
: 
 
 The clearance of goods for consumption is ca rried out at sites authorized by the customs 
administration.  When a risk of under-invoicing or under-valuation is detected, importation of the 
goods concerned is restricted to the sites at wh ich the customs administration has the resources to 
handle clearance and release for consumption.  Question No. 4
 
 
 We understand that Colombia requested a reservation under paragraph 2 of Annex III of the 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, 
which was adopted by the Committee on Customs Valuation on 18 May 2000 for certain textile 
products for periods of 1, 2 and 3 years respectively.  Is this information correct? 
 
Answer : 
  In Decision G/VAL/26 of 18 May 2000, the Co mmittee on Customs Valuation extended until 
2003 the reservation Colombia entered in 1995 in order to be able to apply minimum prices to certain 
products.  
 
Question No. 5
 
 
 Did this reservation expire in 2003?  If it has expired what provisions of the WTO 
Agreements does Colombia base its application of minimum or indicative prices to certain goods in 
respect of certain countries only?  What is the le gal basis for such measures and for the products they 
cover? 
 
Answer : 
 
1. The extended reservation e xpired on 30 April 2003. 
 2. Colombia bases the application of the measures on the Agreement on Implementation of Article VII of the GATT 1994.  It should be noted th at the indicative prices are reference prices and 
not minimum prices. 
 
Question No. 6
 
 
 We would be grateful if Colombia could expla in how the adoption of the resolutions at issue 
can be reconciled with the obligations set forth in  Article VII of the GATT 1994.  Could Colombia 
please explain the valuation methods that it norma lly uses for the importation of goods into its 
territory and how they tally with the measu res adopted against Panama and other countries. 
 
Answer : 
  Colombia applies valuation methods in accordan ce with and authorized by the Agreement on 
Implementation of Article VII of th e General Agreement on Tariffs and Trade 1994.  It applies them 
without discrimination to imports originating in or proceeding from all countries.  Colombia does 
apply the reversal of Articles 5 and 6 of the Ag reement on Customs Valuation if the importer so 
requests and the Customs Administration gives its approval, in keeping with the reservation it made  G/C/W/554 
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  on acceding to the Agreement Establishing the Wo rld Trade Organization (see G/VAL/2 and its 
addenda).  
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