Colombia WT/TPR/S/172 
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III. TRADE POLICY BY MEASURE 
(1) OVERVIEW  
1. Since its 1996 review, Colombia has continued taking initiatives to modernize its trade 
regime, for example, by simplifying and computeriz ing its customs procedures.  Moreover, efforts 
have been made to promote further liberalizati on, for example, by curtailing the use of import 
licences. 
2. Tariffs are the main means of border  protection and all customs duties are ad valorem .  
Between 1996 and 2006 the arithmetic mean MFN applie d tariff rate increased slightly from 11.5 per 
cent to 12 per cent.  Agricultural products (WTO  definition) have higher average tariff protection 
(16.5 per cent) than other products (11.3 per cen t).  Under the Andean Price Band System, in 
Colombia import duties that increase or decrease in response to fluctuations in international prices are 
applied to imports of a number of agricultural products.  The tariff shows signs of escalation.  
Colombia has bound its entire tariff universe, thereby giving its trade regime greater predictability, 
which, however, is somewhat reduced by the cons iderable gap between the tariffs applied and the 
tariffs bound.  
3. Colombia grants duty-free treatment to a ll imports from Bolivia, Ecuador, Peru and 
Venezuela, provided that they comply with the rules of origin.  Colombia also grants tariff preferences 
to imports from other countries within LAIA. 
4. Apart from tariffs, imports are subject to value added tax (VAT) and consumption tax.  Where 
the application of internal taxes is concerned, imports receive national treatment, with the exception 
of some imported motor vehicles, motorcycles, aircra ft and ships, which are subject to higher rates of 
VAT.  The base for assessing consumption tax on wines,  spirits, aperitifs, cigarettes and tobacco is the 
customs value of the goods plus a seller's margin, wh ich results in a higher tax burden on imports than 
on domestic goods. 
5. Since 2000, Colombia has been applying the Ag reement on Customs Valuation.  It uses 
reference prices which, in the case of footwear and te xtiles, vary according to origin.  Some products 
from certain areas must enter through specific ports of entry or need additi onal information to be 
cleared for home use. 
6. During the review period, 25 anti-dumping (A D) measures, mainly imposed on imported 
inputs, were in force.  Most of the investigations initiated resulted in definitive duties.  Several of the 
products subject to AD procedures accounted for a significant share of Colombian consumption.  
Since 1996, Colombia has notified the WTO of nine safeguard investigations, four of which resulted 
in definitive measures.  The application of safe guard measures has been focused on textile sector 
products, particularly from China. Colombia di d not apply any countervailing measure between 
January 1996 and May 2006. 
7. Colombia has maintained an active progr amme of implementation of sanitary and 
phytosanitary measures (SPS) and technical regul ations.  Between Janua ry 1995 and June 2006, 
Colombia submitted 120 notifications to the WTO rela ting to the Agreement on Technical Barriers to 
Trade, most of which concerned final products, ch emical products and processed foods.  Moreover, it 
completed an extensive process of rationalization of certain standards.  Between 18 April 1997 and 
16 August 2006 Colombia submitted 151 notifications  relating to SPS measures, mostly concerning 
products of animal origin.  Out of all the SPS m easures adopted, the majority were implemented in 
relation to outbreaks of disease in animals. WT/TPR/S/172 Trade Policy Review 
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8. Colombia prohibits the importation of used goods such as vehicles and vehicle parts.  It 
imposes non-automatic licensing on 133 tariff lines, in a few cases to protect the domestic industry.  It 
also makes use of registration and automatic authoriza tions.  Care should be taken to ensure that these 
requirements do not become unjustified barriers to trade. 
9. Colombia has sought to promote its exports th rough various schemes.  It has notified as 
export subsidy programmes the provisions relati ng to the Free Zone and Special Import-Export 
Systems for Capital Goods regimes.  The SCM Committee granted Colombia extensions for the 
elimination of these subsidies, and Colombia subs equently adopted provisions to this end.  The 
benefits granted under the international trading re gime continue to be conditional on the export of 
goods of Colombian origin, while those granted under the "High Export User" programme and the 
Special Economic Export Zone regime are associated  with minimum export requirements.  In 2002, 
Colombia notified the abolition of the export subsid y related with the Tax Reimbursement Certificate. 
10. The exportation of products such as coffee, emeralds, precious stones and some fuels is 
subject to the payment of devel opment fund contributions.  During th e period under review, Colombia 
also applied temporary bans on the export of leathe r and scrap to ensure a sufficient domestic supply. 
11. As trade-related investment measures, Colombia  has notified the WTO of its complementarity 
agreement for the automotive sector with Ecuador  and Venezuela and its agricultural production 
absorption policy.  The minimum originating ma terial requirements of the automotive sector 
programme have been eliminated.  Colombia has abolished non-automatic import licences that 
implemented the agricultural production absorption policy.  
12. The reforms introduced in recent years have brought down the amount of paperwork and the 
cost of setting up new enterprises in Colombia belo w the average for the countries of Latin America 
and the Caribbean.  Although Colombia's competiti on legislation is relatively well developed, it 
would seem desirable to redefine the responsibiliti es of the monitoring and surveillance agencies in 
this area.  In practice, with a few exceptions , prices are not subject to official controls. 
13. Colombia has notified the WTO of 14 stat e trading enterprises with a monopoly on the 
production, importation, exportation, distribution and sale of spirits.  Colombia has carried out an 
ambitious privatization programme, although State participation in th e economy is still considerable, 
especially in the electricity and petroleum sectors. 
14. Colombia offers a variety of government aid, some targeted to specific activities and some of 
a horizontal nature aimed, for example, at supporting access to sources of financing and to markets.  
The National Economic and Social Policy Council has poi nted out that this wide range of programmes 
has introduced a lack of uniformity into the crite ria for applying, allocating and evaluating support 
measures.  The evaluation of the global costs and benefits of these programmes and their possible 
rationalization might therefore help to optimize the use of fiscal resources and the impact of the aid 
provided. 
15. Although it has observer status, Colombia is not a party to the WTO's Plurilateral Agreement 
on Government Procurement.  The State Procuremen t Code allows domestic and foreign bidders to 
participate on equal terms in competing for public c ontracts.  Moreover, there is a law on support for 
domestic industry which awards additional points to  Colombian bids for the supply of goods and 
services and to foreign bids that in corporate domestic value added.  It  would be desirable to carry out 
a cost/benefit analysis of the preferences granted to domestic goods. 
16. In 2001, the WTO's Council for TRIPS examined Colombia's intellectual property rights 
legislation.  The regime for the protection of these rights is composed of national laws ands Colombia WT/TPR/S/172 
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regulations and the rules of the Andean Community.  Colombia allows parallel imports for patented 
products. 
(2) MEASURES AFFECTING IMPORTS  
(i) Customs documentation and procedures 
17. The Customs legislation in force is contained in Decree No. 2685 of 1999 and regulated by 
Resolution No. 4240 of 2000.  In instituti onal terms, Decree No. 1071 of 1999 gave the Dirección de 
Impuestos Aduanas Nacionales – DIAN (Directorate of Taxes and National Customs) a new structure 
as an autonomous customs administration.1  Other relevant laws adopted in recent years include Law 
No. 962 of 2005 on the rationalization of administrative procedures;  Law No. 0863 of 2003 on tax, 
customs and fiscal regulations;  Law No. 0646 of 2001 approving the International Convention on the 
Harmonized Commodity Description and Coding System and the Amending Protocol;  and Law No. 383 of 1997 against evasion and smuggling. 
18. In recent years, important initiatives have been  taken to simplify and reduce the formalities 
associated with foreign trade and progress has been  made in areas such as the Single Window for 
Foreign Trade (VUCE)
2,  the single foreign trade form, the implementation of the customs computer 
systems for imports and exports, and the relaxation or elimination of certain requirements prior to 
importation.  According to the authorities, during th e annual period between the first half of 2004 and 
2005, as a result of the changes adopted, import regist ration formalities were reduced by 60 per cent. 
19. At the beginning of 2006, there were two ge neral import procedures:  "free importation", 
which in practice can involve imports with or without registration;  and prior licensing (non-
automatic) (see (vii) below). 
20. To import any product into Colombia it is necessary to produce an import declaration.  
Article 121 of Decree No. 2685 of 1999 defines th e following documents required in support of the 
import declaration, which must be kept for a period  of five years:  import registration or licence, 
where appropriate;  commercial invoice;  transport do cument;  certificate of origin, where required;  
health certificate and other documents required by special regulations, as necessary;  packing list;  
power of attorney, where there is no customs endor sement and the import declaration is filed by a 
"customs intermediation company" (SIA) or the appointed representative;  and the Andean value 
declaration, where necessary.  Resolution No. 10118 of 2005 also requires that the commercial 
invoice for imports of goods from the Colón de Panamá Free Zone, in addition to having been issued by the seller, must include the name or trade na me, tax identification number and address of the buyer 
in Colombia (see (ii) below). 
21. Customs users must be enrolled in the Single Ta x Register.  The declarants are usually SIAs, 
which must represent natural or legal persons carryi ng out foreign trade transactions when the f.o.b. 
value of the imports exceeds US$1,000.
3  Persons registered as a "regular customs user" or as a "high 
export user" do not have to use an SIA.  The use of an SIA is a requirement intended to facilitate 
compliance with the rules on importation, exportati on, customs transit and other customs operations 
and procedures. 
22. Import registration authorizes the importation of goods under the free regime.  Since 1997 a 
number of changes have been made to the regulati ons on registration and, according to the authorities, 
                         
1 See http://www.dian.gov.co/. 
2 See http://www.vuce.gov.co/. 
3 The limit is US$5,000 in Arauca, Leticia, Yopa l, Puerto Carreno, Inirida and Puerto Assis. WT/TPR/S/172 Trade Policy Review 
Page 30 
 
 
these have reduced by 40 per cent the total number of  tariff headings subject to this requirement.4  
Under Decree No. 2680, registration is mandatory for imports of goods subject to licensing and other 
requirements (see (vii) below). 
23. Once the import declaration has been lodged a nd accepted, the customs duties are paid into 
authorized banks or other financial institutions.  One of the following situations may then arise:  
(i) automatic release of the goods;  ( ii) document check, or (iii) phys ical inspection of the goods.  The 
Selection Committee (Resolution No. 2118 of 1999) de termines the selection criteria and risk profiles 
applicable to the various customs procedures and to the various stages in the control and 
administration of the customs management process. 
24. The import procedures can be carried out usin g computerized data processing systems.  
According to official estimates, 80 per cent of impo rt formalities are completed in about 15 minutes, 
which is the average time for keying in the declara tion.  More time (14 hours on average) is required 
if the goods have to be inspected.  In 2004, 20  per cent of imports were subjected to physical 
inspection or a document check. 
25. The customs authorities may issue administrative d ecisions in connection with situations such 
as seizure, forfeiture, abandonment, the registration,  qualification or authorization, or renewal of 
authorization, customs users and a uxiliaries, penalties, the enforcem ent of guarantees, and official 
value or audit assessments.  The following remedies ar e available:  application to present case, within 
five days of the issuing of the administrative decisi on;  application for reconsideration, within 15 days 
of the decision;  and appeal and complaint, within five days of the notification of the administrative 
decision. 
26. According to the calculations made by the authorities5,  in 2004, five out of every 10 imports 
were to some degree irregular due to problems such as:  technical smuggling, overinvoicing, 
underinvoicing, change of provenance and open sm uggling.  Technical smuggling, underinvoicing 
and open smuggling affected 34.4 per cent of total merchandise imports.  In recent years, as a result of 
tighter customs controls and the adoption of  Law No. 383 of 1997, smuggling seems to have 
decreased.6  However, there are still factors which, ta ken together, could create incentives to smuggle, 
such as, for example, the costs involved in comp leting customs formalities and the level of customs 
duties and VAT.  Smuggling is also mentioned as a way of laundering the proceeds of illicit activities. 
27. Pre-shipment inspection was abolished by Decree No. 2654 of 1999. 
(ii) Customs valuation 
28. By Decree No. 2685 of 1999 Colombia approved legislation for implementing the WTO's 
Customs Valuation Agreement and Resolution No. 4240 (Title VI) of 2000 introduced its regulatory 
framework.  Within the Andean Community c ontext, Decision No. 571 of 2003 and Resolution 
No. 846 of 2004 also make referenc e to the Valuation Agreement. 
                         
4 INCOMEX External Circular No. 126 of 1998 (import registrations and licences);  Decree No. 2680 
of 1999 (mandatory import registration);  Resolution No . 4240 of 20000 (Customs Code);  INCOMEX External 
Circular No. 036-A of 2000 (products without import registration). Viewed at:  http://www.mincomercio.gov.co/VBeContent/Documen ts/Normatividad/Circulares/circularexterna. 
5 National Customs Directorate (2006), page 2. 
6 According to informati on provided by the authorities, the numbe r and value of seizures for smuggling 
rose from 14,376 (Col$137.4 million) in 2003 to 18,995 (Col$241.2 million) in 2005. Colombia WT/TPR/S/172 
 Page 31 
 
 
29. Colombia has notified the WTO of chang es in its customs valuation legislation7 and has 
replied to questions concerning th e administration of the Agreement.8 
30. Colombia has availed itself9 of the reservation for determining the customs value of imports 
of textiles, footwear and vehicles through the u se of officially established minimum values.   
31. For some agricultural and industrial products10, Colombia maintained the right to use 
minimum prices until April 2002, and for other products the Andean Price Band System11 up to April 
2003.  Within this context, Article 253 of Decree  No. 2685 of 1999 gave the Director of Customs 
powers to determine official prices.  DIAN Memorandum 00338 of 30 April 2003 stipulates that from 1 May 2003 official minimum prices no longer apply for the customs valuation of products subject to 
the Andean Price Band System (see also Chapter IV(2)).  In May 2003, Colombia notified the WTO 
that it was abolishing the use of these minimum prices.
12 
32. Duty is assessed on the value of the goods for customs purposes established using the 
methods set out in the Valuation Agreement.  In  application of Andean Community (CAN) Decision 
No. 571, Colombia defines the tax base as the c.i.f.  transaction value.  The order of application of 
Articles 5 and 6 of the Valuation Agreement may be  reversed whenever the importer so requests and 
the customs administration gives its consent.  The ta x base, expressed in US dollars, is converted into 
Colombian pesos at the representativ e market exchange rate notifie d by the Financial Supervisory 
Authority for the last working da y of the week preceding that in which the import declaration is 
presented and accepted.  
33. The authorities have identified control of underinvoicing as one of the major challenges 
facing Colombia's customs administration.  The aut horities note that one measure adopted in order to 
exercise such control consists in restricting the en try of goods into Colombian territory to points at 
which DIAN has the resources to carry out the neces sary checks efficiently during customs clearance.  
In 2005, it was decided13 that, between 7 July 2005 and 30 June 2006, imports of textiles and footwear 
originating in and/or imported from Panama and Ch ina would have to enter through the El Dorado 
Airport and the Special Customs Administration of  Bogota, if transported by air, and through 
Barranquilla if they arrived by sea.14  Resolution No. 06691 of 2006 extended these measures until 
31 December 2006. 
34. Reference prices are used as a means of detec ting undervaluation.  The reference prices are 
established on the basis of information obtained fro m importers and suppliers.  In some cases, the 
international average cost of the goods is used.  On ce the reference prices have been determined, they 
are recorded in a draft administrative decision whic h is submitted to importers  and the general public 
for consideration.15 
35. The authorities stressed that the reference prices are merely indicative.  The reference price is 
one of the factors to be taken into consideration in determining the value for customs purposes.  If 
                         
7 WTO document G/VAL/N/1/COL/1 of 23 January 2001. 
8 WTO document G/VAL/N/2/COL/1 of 24 January 2001. 
9 WTO document G/VAL/N/4/COL/2 of 27 April 2001. 
10 Meat, some dairy products, other wheat, fats  and oils, orange ju ice, soya-bean cake. 
11 Pig meat, poultry meat, kidney beans, powdered milk, cheese, durum wheat, barley, maize, rice, 
sorghum, flour wheat, oils, and sugar.  WTO document G/VAL/N/4/COL/1 of 12 July 2000. 
12 WTO document G/VAL/N/4/COL/4 of 21 May 2003. 
13 Resolutions Nos. 05796 and 12465 of 2005. 
14 Goods shipped to a "regular customs user" or a "hig h export user" are not subject to this requirement. 
15 DIAN, consulted at:  http://www.dian.gov.co/. WT/TPR/S/172 Trade Policy Review 
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during subsequent verification it is not possible to value by means of methods 1 to 5 of the Customs 
Valuation Agreement, in application of the fallb ack method and after considering the requirements 
with flexibility, reference prices are used  for valuing identical or similar goods. 
36. Resolution No. 10118 of 2005, supplementing Ar ticle 188 of Resolution No. 4240 of 2000, 
requires the presentation of the commercial invoice fo r goods from the Colón de Panamá Free Zone.  
According to the authorities, these measures were adopted  to deal with situations in which the f.o.b. 
prices are lower than the prices in the countries pro ducing the goods or irregularities are detected in 
the invoices issued by the supplier in Panama. 
37. Resolutions Nos. 04952 and 04953 of 2006 estab lished indicative prices for toys originating 
in and/or imported from certain countries16;  estimated prices were also established for toys 
originating in and/or imported from other countries.17  Resolutions Nos. 10953 and 10954 of 2005 
established indicative prices for blankets impor ted from South Korea, China and Panama and 
estimated prices for blankets imported from countries other than South Korea, China and Panama.  A 
guarantee must be provided where the reference pr ices are lower than the indicative prices or the 
estimated prices.  According to the authorities, subsequent verification de finitively determines the 
appropriate value for customs purposes using the rele vant Customs Valuation Agreement method.  If 
subsequent verification shows that the declared prices are correct, the guarantee is cancelled or any 
excess duty paid is refunded. 
38. In April and May 2006, concerns were ra ised before the WTO Committee on Customs 
Valuation and before the Council for Trade in Goods18  regarding the way in which Colombia applies 
reference prices for certain products, including footwear and textiles. 
39. The office for settling disputes relating to the valuation and classification of goods, in 
connection with subsequent verification, is the Customs Audit Division, whose proposals are passed 
on to the Assessment Division which decides on the merits through official assessments.  These may 
be appealed by the importer, the Legal Division being responsible for deciding the appeal.  If the 
importer does not agree with the decision, he can ta ke his case to the Administrative Tribunal, which 
is independent of the customs authority.  Accordin g to the authorities, in 2005 there was a total of 
6,052 disputes relating to the valuation of impor ted goods.  The Buenaventura Administration is 
where most such disputes were reported. 
(iii) Rules of origin 
40. Colombia does not have a non-preferential rules of origin regime. 
41. Colombia has notified the WTO of its prefer ential rules of origin established in the 
agreements with the Andean Community and LAIA.19  Article 121 of Decree No. 2685 of 1999 
defines the origin information to be included in th e import declaration.  The group in charge of rules 
of origin with DIAN's Customs Technical Subdirector ate verifies the origin of goods that enjoy tariff 
preferences.  The Regulations and Customs Theo ry Division, in coordination with the Customs 
Technique Subdirectorate, considers the policy aspects and technical rulings in the application of the 
                         
16 China, Chinese Taipei, Hong Kong, India, Indonesia, Malaysia, North Korea, Pakistan, Panama, 
Philippines, Singapore, South Korea,  Thailand and Vietnam. 
17 From any country other than China, Chinese Taipei, Hong Kong, India, Indonesia, Malaysia, 
North Korea, Pakistan, Panama, Philippines, Singapore, South Korea, Thailand and Vietnam. 
18 WTO documents G/VAL/W/154 of 18 April 2006, G/C/W/548 of 2 May 2006, and G/C/W/554 of 
12 May 2006. 
19 WTO documents G/RO/N/1/Add.1 of 22 June 1995;  G/RO/N/12 of 1 October 1996. Colombia WT/TPR/S/172 
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rules of origin to imports.  The Ministry of Trade, Industry and Tourism (MICIT), through the Group 
on the Qualification of Origin and Domestic Produc tion, issues certificates of  origin for Colombian 
exports. 
42. Decisions Nos. 416 (special provisions for determining and certifying origin) and 417 
(declaration and certification procedures) establish the legal framework of the CAN origin regime.20  
The CAN regime establishes the following categories for qualifying origin:  (i) wholly produced;  
(ii) entirely manufactured with originating mate rials;  (iii) manufactured with non-originating 
materials but processed sufficiently to justify a cha nge of tariff heading, and if no such change is 
justified, the c.i.f. value of the non-originating mate rials not to exceed 50 per cent of the f.o.b. value 
of the final goods;  (iv) for assembly goods with or iginating materials the previous requirement also 
applies;  (v) Specific Requirements of Origin (SROs) determined by the General Secretariat21 if the 
rules of origin are not considered sufficient or a ppropriate.  SROs prevail over any other criterion and 
are currently being used for cars, chemicals and oil-seeds. 
43. Cumulative origin is recognized within the A ndean origin regime.  Decision No. 416 governs 
the declaration and certification procedures. 
44. Colombia has concluded bilatera l and multilateral agreements with several LAIA countries in 
which emphasis is placed on cumulation between signato ry countries.  One of the more important of 
these agreements is the FTA-G3 signed with Mexico a nd Venezuela, in which specific rules of origin 
permitting cumulation between parties were developed.   The transaction value criterion is applied to 
some products for calculating the regional content value. 
45. The agreements under the LAIA general regime  list the products which qualify as totally 
originating.  Goods manufactured with non-orig inating materials qualify for preferences if they 
underwent substantial or sufficient processing as define d in the agreement in question.  For Colombia, 
the LAIA general regime grants origin on the basis of the value added criterion where the c.i.f. value 
of the imported (non-originating) materials does not exceed 50 per cent of the f.o.b. export value of the finished product;  the percentages vary in the agreements that apply their own regime.  This 
criterion is also applied in some sectoral agreem ents (cars, textiles, capital goods) and in some 
agreements relating to specific products. 
46. Colombia and Chile have signed Partial Scope  Agreement No. 24, which is based on the 
LAIA rules and allows cumulative origin among the parties.  In this agreement, as established by 
LAIA Resolution No. 252, the regional content value is calculated by valuing the contribution of the 
non-originating materials c.i.f. to the final value of the goods f.o.b. 
47. Economic Complementarity Agreement No. 59 of 2005 between Andean countries and 
MERCOSUR introduced changes in the rules of origin that existed with those countries under 
previous agreements.  Colombian Decree No. 141 of 2005
22 contains the agreement in question and 
Annex IV sets out the amended origin regime which, in general, is based on the LAIA general regime.  
Under the agreement, cumulation is allowed not only among the parties but also with Peru and Bolivia 
as members of the Andean Community.  When the crit erion based on the value of the regional content 
of non-originating materials is used, the percentage incorporation of originating inputs rises from 50 
to 55 per cent in seven years, in terms of the contri bution of the non-originating materials c.i.f. to the 
final value of the goods to be exported.  The ag reement includes specific requirements for oil-seeds, 
footwear, clothing, iron and steel industry products, capital goods, and electronic and 
                         
20 See http://www.comunidadandina.org/ingles/origin.htm. 
21 Decision No. 417 establishes the criteria and procedures. 
22 Title XXIII, Administration and Evaluation. WT/TPR/S/172 Trade Policy Review 
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telecommunications products.  Moreover, there is a special chapter on the origin requirements for the 
automotive sector.  Thus, a considerable number of sp ecific rules of origin h as been introduced for a 
total of 1,738 products covering 51 chapters of the Harmonized System.23 
48. In the bilateral and multilateral agreements based on the LAIA rules, the certificate of origin 
must be issued on the same date as that of the co mmercial invoice or within the following 60 days and 
is valid for 180 days.  
(iv) Tariffs 
(a) Structure and levels of MFN tariffs 
49. Colombia accords at least MFN treatment to all its trading partners. 
50. During the period 2001-2005, tariff revenue re presented, on average, 7.4 per cent of all 
income from taxes, the equivalent of 1 per cent of GDP. 
51. The Higher Council for Foreign Trade makes reco mmendations on tariff policy to the national 
government, while the Committee on Customs, Tariff and Foreign Trade Affairs recommends 
changes in tariff rates, in accordance with Law No. 7 of 1991. 
52. Since 1990 Colombia has used the single text  of the Andean countries' Common Tariff 
Nomenclature (NANDINA).  At the beginning of 2006, Colombia's tariff nomenclature consisted of 
6,993 10-digit subheadings (Table III.1).  All import duties are ad valorem  (Table III.2).  Under the 
Andean Price Band System, Colombia applies impor t duties that increase or decrease in response to 
international price fluctuations to imports of various agricultura l products (see Chapter IV(2)).  
Colombia does not apply seasonal tariffs. 
Table III.1 
Summary analysis of MFN tariff, January 2006 
MFN 
Product description  No. of 
lines Average 
(%) Range 
(%) Coefficient 
of variation Average 
bound tariffa 
(%) 
Total 6,993 12.0 0 - 80 0.6 43.1 
HS 01-24 989 17.5 5 - 80 0.6 86.3 
HS 25-97 6,004 11.0 0 - 35 0.6 36.0 
By WTO category      
Agricultural products 940 16.5 5 - 80 0.7 92.7 
  Animals and products of animal origin 106 23.6 5 - 80 0.9 94.6 
  Dairy products 34 21.3 15 - 50 0.3 139.6 
  Coffee and tea, cocoa, sugar, etc. 171 17.2 5 - 20 0.2 88.1 
  Cut flowers, plants 53 8.4 5 - 15 0.4 72.6 
  Fruit and vegetables 213 17.7 5 - 60 0.5 76.5 
  Cereals 36 20.8 5 - 80 1.1 134.8 
  Oilseeds, oils and fats and products thereof 98 15.3 5 - 20 0.3 128.0 
  Beverages and spirits 52 18.8 5 - 20 0.2 97.1 
  Tobacco 12 16.7 10 - 20 0.3 70.0 
  Other agricultural products n.e.s. 165 10.1 5 - 70 0.9 84.1 
  Non-agricultural products (including petroleum) 6,053 11.3 0 - 35 0.6 35.4 
Table III.1 (cont'd)  
 
 
                         
23 Counting each rule defined in terms of the NALADISA 96 classification which may include one or 
more references for products at from 2- to 8-digit level.  See:  http://www.mincomercio.gov.co/ VBeContent/NewsDetail.as p?ID=3899&IDCompany=5. Colombia WT/TPR/S/172 
 Page 35 
 
 
MFN 
Product description  No. of 
lines Average 
(%) Range 
(%) Coefficient 
of variation Average 
bound tariffa 
(%) 
  Non-agricultural products (excluding petroleum) 6,024 11.3 0 - 35 0.6 35.4 
    Fish and fishery products 141 18.5 5 - 20 0.2 40.2 
     Mineral products, preci ous stones and precious metals 374 10.0 5 - 20 0.5 35.0 
     Metals 706 10.0 0 - 20 0.5 35.0 
     Chemicals and photographic goods 1,422 7.4 0 - 20 0.7 35.0 
     Leather, rubber, footwear and travel goods 211 13.1 0 - 20 0.4 34.8 
     Wood, wood pulp, paper and furniture 325 12.9 0 - 20 0.4 35.0 
     Textiles and clothing 942 18.3 0 - 20 0.2 36.8 
     Transport equipment 193 14.2 0 - 35 0.7 35.4 
     Non-electrical machinery 759 9.1 0 - 20 0.6 35.0 
     Electrical machinery 406 10.2 0 - 20 0.5 35.0 
     Non-agricultural products n.e.s. 545 10.9 0 - 20 0.6 35.0 
  Petroleum 29 10.0 5 - 15 0.3 35.0 
By ISIC sectorb      
Agriculture and fishing 400 11.9 5 - 80 0.5 74.9 
Mining 113 5.3 5 - 15 0.3 35.0 
Manufacturing  6,479 12.1 0 - 80 0.6 41.3 
By HS Section      
  01  Live animals;  animal products 268 20.7 5 - 80 0.7 74.8 
  02  Vegetable products 378 14.6 5 - 80 0.8 90.7 
  03  Fats and oils 62 17.3 5 - 20 0.2 123.4 
  04  Prepared foodstuffs, etc.  281 18.4 5 - 20 0.2 83.2 
  05  Mineral products 194 6.2 0 - 15 0.4 35.0 
  06  Products of the chemical or allied industries 1,340 6.6 0 - 20 0.6 36.9 
  07  Plastic and rubber 298 13.2 0 - 20 0.4 34.8 
  08  Raw hides and skins 80 12.1 5 - 20 0.5 40.3 
  09  Wood and articles of wood 98 12.3 5 - 20 0.4 35.0 
  10  Pulp of wood, paper, etc. 204 12.6 0 - 20 0.5 35.0 
  11  Textiles and textile articles 930 18.1 0 - 20 0.2 38.0 
  12  Footwear, hats and other headgear 58 18.8 15 - 20 0.1 36.1 
  13  Articles of stone 163 13.8 5 - 20 0.3 35.0 
  14  Precious stones, etc. 57 11.1 5 - 20 0.5 35.0 
  15  Base metals and articles of base metal 690 10.4 0 - 20 0.5 35.0 
  16  Machinery and mechanical appliances 1,199 9.4 0 - 20 0.6 35.0 
  17  Transport equipment 205 14.1 0 - 35 0.7 35.4 
  18  Precision instruments 303 6.9 0 - 20 0.6 35.0 
  19  Arms and ammunition 28 18.2 10 - 20 0.2 35.0 
  20  Miscellaneous manufactured articles 150 17.9 5 - 20 0.2 35.1 
  21  Works of Art 7 20.0 20 - 20 0.0 35.0 
By state of processing      
First stage of processing 811 11.6 0 - 80 0.8 62.1 
Semi-processed products 2,346 10.0 0 - 20 0.6 37.1 
Fully processed products 3,836 13.2 0 - 80 0.6 42.8 
a The bindings are given in HS 96 and the applied rates in HS 2002;   consequently, there may be differences in the number of li nes 
included in the analysis. 
b ISIC (Rev.2), except for electricity (one line). 
Source : WTO Secretariat estimates, based on data supplied by the Colombian authorities. 
Table III.2 
MFN tariff structure, 2006 
  2006 
1. Total number of lines 6,993 
2. Non- ad valorem  tariffs (% of tariff lines) 0.0 
3. Non- ad valorem  tariffs with no AVEs (% of tariff lines) 0.0 
4. Tariff quotas (% of tariff lines) 0.3 
5. Duty-free tariff lines (% of tariff lines) 3.0 
6. Average lines above zero (%) 12.3 
Table III.2 (cont'd)  WT/TPR/S/172 Trade Policy Review 
Page 36 
 
 
  2006 
7. Domestic tariff "peaks" (% of tariff lines) a 0.4 
8. International tariff "peaks" (% of tariff lines)b 24.7 
9. Bound tariff lines (% of tariff lines) 100.0  
a Domestic tariff peaks are defined as rates exceeding th ree times the overall simple average applied rates. 
b International tariff peaks are defi ned as rates exceeding 15 per cent. 
Source : WTO Secretariat estimates, based on data  supplied by the Colombian authorities.  
53. The arithmetic mean of the MFN tariff rates app lied in 2006 is 12 per cent, higher than the 
11.5 per cent recorded in 1996.  The authorities ha ve mentioned that between 2001 and 2004 some 
423 tariff headings were split (Decrees Nos. 2800 of  2001 and 4341 of 2004).  Agricultural products 
(WTO definition) have the highest tariff protecti on levels, with applied MFN tariff rates averaging 
16.5 per cent.  The corresponding average for non-agricultural products is 11.3 per cent.  In 2006, the 
product groups with relatively high tariff rates ar e dairy products, products of animal origin and 
cereals (Table III.1). 
54. The most common tariff rate is the 5 per cent applied to 33.8 per cent of tariff headings.  
About 3 per cent of headings are zero-rated.  Th e tariff rates are spread over 38 groups ranging from 
zero to 80 per cent.  A little over 14 per cent of tari ff rates are less than 10 per cent (excluding zero 
per cent tariffs), and about 25 per cent are higher than 15 per cent.  The 80 per cent rate is applied to 
15 types of product (meat and rice). 
55. The tariff is characterized by positive tariff esc alation between raw materials, semi-processed 
products and fully processed products (Table III.1). 
56. The tariff applied by Colombia is based on th e Andean tariff structure (Decision No. 370).  
This establishes four levels of 5 per cent, 10 per cent, 15 per cent and 20 per cent within which the 
tariffs increase in accordance with the degree of  processing of the goods.  The tariffs on cars 
constitute an exception to this structure with an applied tariff of 35 per cent.  Other exceptions are 
made for certain raw materials, inputs and capital goods not produced in the Andean subregion.  The application of CAN Decision No. 535, which aims to bring 62 per cent of the tariff universe within 
the Common External Tariff (CET), has been repeated ly postponed.  In February 2006, the Andean 
countries announced that they would again be postponing the implementation of the CET for one 
year.
24 
(b) Tariff quotas 
57. Colombia has the right to operate tariff quotas under the commitment on minimum access 
opportunities contained in the WTO Agreement on Agri culture.  Colombia has notified the WTO that 
in 2005 it operated tariff quotas for maize (yellow an d white), rice (in the husk, husked, semi-milled 
or wholly milled, broken), sorghum, soya beans, co tton, meat of bovine animals (fresh, frozen, edible 
offal) and poultry cuts.25  Colombia also maintains tariff quotas for agricultural products in the 
preferential agreement signed with MERCOSUR (see Chapter IV(2)).  
(c) Tariff bindings 
58. The bindings of Colombia's concessions are contained in Schedule LXXVI appended to the 
General Agreement on Tariffs and Trade 1994.  The Sc hedule follows the structure of the HS/96.  In 
                         
24 See http://www.comunidadandina.org/prensa/notas/np1-2-06.htm. 
25 WTO document G/AG/N/COL/35 of 9 June 2006. Colombia WT/TPR/S/172 
 Page 37 
 
 
mid-2006 Colombia was in the process of bringing its Schedule into line with and ensuring the latter's 
certification on the basis of the HS/2002. 
59. Colombia has bound its entire tariff universe in the WTO.  In these bindings the tariff rates 
fluctuate between 15 and 227 per cent.  The averag e final bound rates were:  43.1 per cent for all 
products, 92.7 per cent for agricultural products and 35.4 per cent for non-agricultural products 
(Table III.1). 
60. With some exceptions, the tariffs on non-agricultural products were bound at 35 per cent.  A 
bound tariff of 40 per cent is maintained on vehicles,  some textiles and made-up clothing, leather and 
footwear.  Twenty-two subheadings of the ch emicals, plastics and rubber group maintain a bound 
tariff of 30 per cent. 
61. Among the tariff lines in the Schedule that are strictly comparable with the HS 2002, no 
10-digit line for which the applied rate at the begi nning of 2006 could have been higher than the 
corresponding bound rate has been identified. 
(d) Tariff concessions 
62. In addition to its export promotion schemes (S pecial Import-Export Systems, Free Zones and 
Special Economic Export Zones (see Section (3) belo w), Colombia operates several special customs 
regimes that offer tariff concessions to importers (Table III.3).  These regimes provide for relief from payment of duties and other taxes on goods impor ts under certain conditions.  Decree No. 4271 of 
2005 made DIAN's Special Administrative Division responsible for the administration and monitoring 
of these regimes.  Decree No. 210 of 2004 gave th e Imports Committee of the MCIT responsibility for 
authorizing tariff exemptions. 
Table III.3 
Tariff concessions granted under sp ecial customs regimes, July 2006 
Regime Characteristics Time limit  Basis in law 
Reimportation in 
the same state Goods exported temporarily or outright 
which were in free circulation, provided 
they have not unde rgone modification 
abroad Up to three years Article 140 of 
Decree No. 2685 
of 1999 
Temporary 
admission for re-
exportation in the same state Importation of certain goods intended for 
re-exportation within a specified period, 
without having undergone any 
modification, other than normal wear and 
tear.  Fungible goods and those that cannot be fully identified cannot be imported 
under this procedure.  DIAN determines 
by resolution those goods that are eligible for short-term or long-term temporary admission. (a) Short-term, maximum period of 
importation six months from release of the 
goods, with a possible extension for a further 
three months;  or (b) long-term, for capital 
goods, their parts and accompanying accessories necessary for their normal 
functioning, with a maximum of five years 
from release of the goods.  In special circumstances, DIAN may grant a period greater than the maximum. Articles 142 to 
161 of Decree 
No. 2685 of 1999 
Temporary 
admission of 
capital goods for 
inward processing  Temporary admission of capital goods, 
their parts and spares intended for re-
exportation after repair or overhaul.  DIAN determines by resolution the goods that can be placed under this procedure. Not more than six months.  Where there is 
good cause,  DIAN may authorize an 
extension for a period not exceeding that 
initially granted. Articles 163 to 
167 of Decree 
No. 2685 of 1999 
Temporary 
admission for 
inward processing under the special 
import–export 
systems Temporary admission of raw materials 
and inputs for re-exportation, total or 
partial, after having undergone 
processing, manufacturing or repair. Not more than six months.  Where there is 
good cause,  DIAN may authorize an 
extension for a period not exceeding that 
initially granted. Articles 168 to 
183 of Decree 
No. 2685 of 1999  
Table III.3 (cont'd)  
 
 WT/TPR/S/172 Trade Policy Review 
Page 38 
 
 
Regime Characteristics Time limit  Basis in law 
Temporary 
admission for industrial 
processing Temporary admission of raw materials 
and inputs for re-exportation after having been worked, processed or manufactured, 
by industries recognized as "high export 
users" and authorized as such by DIAN. Not more than six months.  Where there is 
good cause, DIAN may authorize an extension for a period not exceeding that initially 
granted. Articles 184 to 
188 of Decree 
No.  2685 of 1999 
Importation for 
processing or 
assembly  Importation of goods for processing or 
assembly, by industries recognized by 
DIAN for that purpose. The period authorized by DIAN for 
processing.  Articles 189 to 
191 of Decree 
No. 2685 of 1999  
Free and special 
warehouses Goods from abroad which remain in free 
warehouses are exempt from the payment 
of customs duties and consumption tax 
and are treated as having been 
temporarily admitted for re-exportation in 
the same state. None Articles 63 and 64 
of Decree 
No. 2685 of 1999  
Hydrocarbons and 
mining industry The hydrocarbons and mining industry 
will have the provisional advantage, up to 19 October 2010, of tariff exemptions 
applicable to impor ts of machinery, 
equipment and spares intended for the 
extraction, treatment, processing and 
transport of minerals and the recovery, pipeline transport and refining of 
hydrocarbons. None Decree No. 4743 
of 2005 
Shortage of 
subregional 
supplies CAN has authorized Colombia to grant 
duty-free admission subject to confirmation of a shortage of subregional 
supplies, for five years. None CAN Resolution 
No. 880 of 2004 
Goods for 
extractive 
activities Resolution No. 969 of 2005 authorized 
duty-free admission for goods for 
extractive, mining and petroleum activities, for public policy reasons. None CAN Resolution 
No. 969 of 2005 
Import duty 
suspension 
regime, Automotive 
Sector Agreement 
(Colombia, Ecuador, Venezuela) The duty rate for imported parts and 
components is 0 per cent. None Article 7 of the  
Complementarity 
Agreement for the Automotive 
Sector 1999 
(Colombia, Ecuador, 
Venezuela);  
Resolution 
No. 0701 of 2002 
Source : Prepared by the WTO Secretariat, on the basis of Decr ee No. 2685 and information s upplied by the authorities. 
(e) Tariff preferences 
63. Colombia grants duty-free treatment to a ll imports from Bolivia, Ecuador, Peru and 
Venezuela, provided that they comply with  the Andean Community origin criteria.26  Colombia also 
grants preferential treatment to imports from countri es with which it has signed agreements within the 
framework of LAIA (see Chapter II(5)). 
64. The preferential agreement tariff averages are presented in Table AIII.1.  The average 
preferential tariffs applied vary from 0 per cent for Andean partners to 0.6 per cent for Chile, 1.2 per 
cent for Mexico and 9.5 per cent for CARICOM countri es.  The tariffs applied to agricultural products 
are substantially higher than those applied to non-ag ricultural products with the relative exception of 
CARICOM.  For agricultural products, the prefer ential margins are about 16 per cent for Andean 
countries and 12 per cent for Chile.  High tariff rates apply to fish, textiles and transport equipment 
and there is tariff escalation between primary pr oducts and those with greater value added. 
                         
26 See http://www.comunidadandina.org/prensa/notas/np10-1-06.htm. Colombia WT/TPR/S/172 
 Page 39 
 
 
(v) Other charges 
(a) Charges on imports 
65. Article 56 of Law No. 633 of 2000 established a special charge for customs services27 which 
was declared unenforceable by the Constitutional Court28 in 2001. 
(b) Value added tax 
66. Decree No. 624 of 1989 with its amendments contains the provisions of the Tax Code 
concerning the taxes administered by DIAN.29  Apart from tariffs, the only charges applied to imports 
are value added tax (VAT) and the consumption tax applied to certain kinds of goods.  VAT30 (also 
referred to as sales tax) is levied on sales and imports  of movables and the provision of services in the 
national territory.31  In the case of imports, VAT is charged on th e c.i.f. value plus duties and is paid at 
the same time as the duties.  
67. In 2006, the general rate of VAT was 16 per cen t, with some products being subject to other 
rates ranging from 2 to 38 per cent (see Table AIII.2). 
68. During the period under review, Colombia main tained VAT rates which were applied at 
different levels to imports and domestic products.  In mid-2006, according to Article 471 of the Tax 
Code in force32, differential rates were being applied in the following cases:  (i) motorcycles and 
scooters (35 per cent on imports and 25 per cent on dom estic products);  (ii) camper vehicles with a 
value of more than US$30,000 (35 per cent on imported vehicles and 25 per cent on domestic 
products);  (iii) vessels for pleasure or sports of heading 89.03 (35 per cent on imports and 25 per cent 
on domestic products;  (iv) aerodynes (35 pe r cent on imports and 16 per cent on domestic 
products).33 
69. The authorities have pointed out that Article  78 of a draft tax reform law submitted to 
Congress in July 2006 seeks to rectify the differen ces in the VAT rates applied to domestic and 
imported products, in particular for motor vehicles. 
                         
27 Special charge to offset the cost  of the customs services provided by DIAN, equivalent  to 1.2 per 
cent of the f.o.b. value of the goods imported. 
28 Court Orders C 992, C 1.254 and C 1.069 of 2001.  Article 56 of Law No. 633 remained in force 
from the publication of Law No. 633 on 29 December 2000 until 19 September 20 01.  Court Order 992 of 
19 September 2001 examined the constitutionality of Law No. 633 of 2000 and, among other things, declared 
Article 56 unenforceable.  The other orders cited correspond to specific claims concerning Article 56 in which 
reference is made to the ruling of the Constitutional Court in Order C 992 of 2001. 
29 See http://www.secretariasenado.gov.co/leyes/ET.HTM. 
30 The sales tax, known as VAT, is a levy on the consumption of goods and services in the various 
stages of production, importation and distribution.  The events that generate the tax, except where exemptions 
are granted, are the sale of movabl e tangible goods, the provision of services in the national territory, the 
importation of movable tangible goods and the circulation, sale or operation of games of chance (see http://www.dian.gov.co/dian/15services.nsf/319e10bdd13e144b05256ee8006ecf8d/bee2d8dc596de5200525713 
400781e47?OpenDocument). 
31 See http://www.businesscol.com/empresari al/tributarios/tributarios.htm#reg%20ib. 
32 Viewed at:  http://www.secretar iasenado.gov.co/leyes/ET.HTM. 
33 DIAN official letter 070637 of 15 October 2004 and Article 39 of Law No. 788 of 2002. WT/TPR/S/172 Trade Policy Review 
Page 40 
 
 
70. Colombia maintains many exceptions to the payment of VAT.34  In some cases, exceptions 
are granted according to the end use of the goods .  Among others, the following goods and services 
are exempt from VAT:  movable goods for export;  school exercise books;  alcohol for mixing with 
petrol for motor vehicles;  services supplied in Co lombia in connection with contracts to be used 
abroad by foreigners, provided that the foreigne r has no business dealings or activities in Colombia35;  
and the tourism services of foreign residents to be  used in Colombia.  Where there is no domestic 
production, VAT is not applied to the temporary im portation of heavy machinery for basic industries36 
or to machinery or equipment for recycling.37 
71. Exporters are exempt from VAT and may theref ore claim back from DIAN the VAT paid on 
purchases of inputs (including services) used in the production of goods for export.  
72. Article 428 of the Tax Code, sections (b) and (g)38, defines the export requirements for VAT 
not to be levied on imports of:  (i) materials to be processed under the import-export plan;  and 
(ii) industrial machinery not produced in Colo mbia, intended for use in the processing of raw 
materials by "high export users"39 (see Chapter (3)(iv) below). 
73. The amount paid in VAT may be deducted from income tax in the following cases:40  
(i) purchase and clearance for home use of capital goods  and computer equipment in the case of legal 
persons;  (ii) purchase of capital goods acquired by  leasing with irrevocable option to buy (the 
deduction can be taken by the leasing company or assigned to the user);  and (iii) purchase of heavy machinery for basic industries. 
74. In 2005, the revenue from internal VAT represente d 28 per cent of total tax revenue collected.  
According to the data supplied by DIAN, VAT re venue relating exclusively to imports represented 
14.4 per cent of total tax revenue collected.  
(c) Other taxes and charges 
75. There is a consumption tax
41 levied on the following produc ts:  (a) beer, aerated waters, 
refajos , and mixtures of fermented and non-alcoholic beve rages;  (b) spirits, wines, aperitifs and the 
                         
34 Tuna;  honey;  bovine semen;  vegetables/bulbs;  fruit;  coffee-beans, unroasted;  maize;  rice;  seed 
for sowing (barley, oats, sorghum, soya, walnut, cotton);  sugar cane;  raw coco a;  bread;  bottled water;  salt;  
natural sulphur;  electricity;  radioactive material for medical purposes;  vitamins;  antibiotics; blood;  
medicaments;  fertilizer;  pesticides and insecticides;  natural rubber;  tractor tyres;  condoms;  rough wood;  
nursery trees;  newsprint;  newspapers/periodicals;  agave (pita);  fabrics of vegetable fibre;  jute, hemp and 
henequen packing materials;  cutting blades for machines;  engines;  agricultural mach inery;  cleaning machines;  
wheelchairs;  arms;  pencils;  petroleum for refining. 
35 A legal purchase contract drawn up by a lawyer in Colombia and to be used by a foreigner in another 
country. 
36 Mining, hydrocarbons, heavy chemicals, iron and steel, extractive metallurgy, electricity generation 
and distribution and catchment, purification and transport of water. 
37 Does not apply to enterprises covered by Decree No. 1264 on imports under the Colombia-Peru 
Customs Cooperation Agreement or to imports under Article 428(b) and (d) of the Tax Code. 
38 See http://www.secretariasen ado.gov.co/leyes/ET.HTM#496. 
39 A reference to the definition of "high export user " can be found in Article 36(b) of Decree No. 2685 
of 1999, namely:  "b) That the value exported, directly or through an international trading company, represents 
at least thirty per cent (30 per cent) of the value of its total sales in the same period" 
40 See http://www.businesscol.com/empresari al/tributarios/tributarios.htm#reg%20ib. 
41 Tax Code;  Chapters VII to XI of Law No. 223 of 1995;  Law No. 788 of 2002. Colombia WT/TPR/S/172 
 Page 41 
 
 
like (within the jurisdiction of the departments)42;  and (c) cigarettes and manufactured tobacco 
(within the jurisdiction of the departments). 
76. The consumption tax on some imported products  is higher than that paid on the domestic 
product, because the tax base for imported beer, aerated waters, refajos , wines, spirits, aperitifs, 
cigarettes and tobacco is the customs value of the goods, duty included, plus a seller's markup of 
30 per cent.43 
77. There is a global tax on the consumption of regul ar petrol, super, diesel and any other fuel 
derived from petroleum for use as motor fuel.  In J une 2006 this global tax amounted to Col$651.97 a 
gallon for regular, Col$749.77 a gallon fo r super and Col$432.11 for diesel fuel.44  Motor fuels are 
also subject to a surcharge on consumption inte nded mainly for the municipalities where they are 
sold.  In June 2006, the surcharge was Col$1,110. 29 a gallon for regular, Col$1,517.58 a gallon for 
super and Col$228.63 for diesel fuel. 
(vi) Prohibitions 
78. Colombia prohibits the importation of certain goods in order to protect human and animal 
health and life and preserve plants, as well as to protect public morals, the environment and vital 
security interests.  In particular, there is a ban on the importation of chemical, biological and nuclear 
weapons, as well as nuclear and toxi c waste (Article 81 of the Political Constitution);  warlike toys 
(Law No. 18 of 1990);  and pornographic material involving minors (Article 218 of Law No. 599 of 
2000). 
79. For environmental protection reasons, th e production and import of ozone-depleting 
substances (Montreal Protocol, 1987) are prohibited a nd the trade in wild species of fauna and flora is 
regulated (Convention on Trade in Endangered Species of Wild Flaura and Fauna, 2002).  Likewise, 
temporary prohibitions are imposed with a view to eliminating risks due to circumstances that might 
affect human or animal health (see (x) below). 
80. Moreover, through the prior licensing regime (non-automatic licensing), some imports are 
restricted for reasons of security or to comply with international agreem ents adopted within the 
context of psychotropic drug control and measures to control trafficking in illicit drugs, arms and 
ammunition, narcotic drug precursors and chemical s used in the production of pharmaceuticals.  For 
safety reasons and to protect human health and jobs, the importation of used, clearance and faulty goods is restricted.  Used motor vehicles are in cluded in these restrictions (see Chapter IV(5)). 
(vii) Licences, registration and other requirements  
81. Colombia has notified the WTO of the procedures relating to import licences
45 and has replied 
to the questionnaire46 on import licensing procedures.  
                         
42 Spirits, wines, aperitifs and the like are ta xed on the alcohol content of the product. 
43 Articles 189, 205 and 210 of Law No. 223 of 1995;  Article 475, Tax Code;  Article 60, Law No. 863 
of 2003. 
44 There are exemptions from this type of global tax for fuel used for fishing and/or cabotage along 
Colombia's coasts or for the activities of the Colombian navy.  Moreover, aircraft fuel of the 100/300 type, oil used for generating electricity in non-interconnected areas and aviation jet fuel and IFO-type mixtures used for 
operating large sea-going vessels are excepted. 
45 WTO document G/LIC/N/1/COL/1/Add.1 of 14 February 2001. 
46 WTO documents G/LIC/N/3/COL/1/Add.1 of 13 February 1997, G/LIC/N/3/COL/1/Add.2 of WT/TPR/S/172 Trade Policy Review 
Page 42 
 
 
82. Some of the principal regulatory changes of recent years relating to import licences are set out 
in Decree No. 4406 of 2004, as amended by Decree No. 1846 of 2005, which specifies the imports subject to the mandatory import registration pr ocedure and the compulsory nature of the non-
automatic licensing procedure for temporary imports which become ordinary imports (amendment of 
Customs Code Decree No. 2685 of 1999 by Decree No. 4136 of 2004).  Other import licensing 
provisions can be found in Resolution No. 17 of 1996 on annual licences for the petroleum and mining sector;  the 1999 Automotive Sector Agreement (vehicle imports);  Administrative Order 003 of 2001 (imports of used spare parts);  and Decree No. 1573 of 2002 (annual military licences). 
83. Colombia has two types of import licence, na mely, prior licences (non-automatic licences 
within the context of the WTO) and import registrati ons (automatic licences within the context of the 
WTO). 
84. According to the authorities, out of all the s ubheadings in the tariff, about 98 per cent fall 
within the so-called free importation regime, of wh ich about 38 per cent require import registration.  
Moreover, approximately 2 per cent of tariff lines  (133 headings) fall under the prior import licensing 
regime.  Thus, slightly under 60 per cent of the tariff  universe is not subject to either registration or 
prior licensing.  
(b) Non-automatic prior licences 
85. Non-automatic prior licences are used for various groups of products subject to restrictions 
for reasons such as the need to control the produc tion of illicit drugs, national defence, health, the 
environment, and the need to control the supply of  used goods to protect consumers.  Table III.4 
shows the types of products covered. 
86. The list of goods requiring a prior licence determ ined by the National Government, which in 
2006 included 133 products, is defined by the Higher Council for Foreign Trade.
47  T h e  M C I T  i s  
responsible for issuing prior licences.  These licence s apply equally to imports from all countries, save 
where a particular measure makes an exclusion or where other exceptions are established. 
Table III.4 
Prior import licensing regime 
Prior licensing regime Authorized 
entity Type of products covered Number of 
subheadings Justification Legal measure 
Products included in the 
list determined by the 
National Government  Higher Council 
for Foreign 
Trade Various 133 National 
security;  health 
protection;  absorption of 
production Annex 1, External 
Circular No. 077 
of 2002 
Narcotic drug precursors National 
Narcotic Drugs 
Directorate Precursors of narcotic 
drugs defined between 
headings 2806100000 and 
3814000000) 25 National 
security;  health 
protection Annex 2 
    Table III.4 (cont'd) 
 
 
                                                                             
13 February 2001, G/LIC/N/3/COL/2 of 3 August 2004, and G/LIC/N/3/COL/3 of 20 October 2005. 
47 For example, these products can be found in the following Chapters of the HS:  02 and 16 (poultry 
cuts and offal);  28 (hydrochloric acid, potassium chlorate);  29 (chloroform, methanol);  30 (human plasma);  
31 (ammonium nitrate);  36 (powders, electric detonators);  38 (organic composite solvents and thinners);  
39 (other cellulose nitrates);  40 (retreaded pneumatic tyres);  63 (rags, cordage, rope);  87 (tanks and other armoured combat vehicles);  88 (aircraf t launching gear);  93 (artillery pieces). Colombia WT/TPR/S/172 
 Page 43 
 
 
Prior licensing regime Authorized 
entity Type of products covered Number of 
subheadings Justification Legal measure 
Free regime goods which 
are non-refundable MCIT For example, samples of no 
commercial value, 
donations .. .. .. 
Imports with tariff 
exemption   .. .. .. 
Used goods  Faulty, used, rebuilt, 
clearance, waste, scrap, and 
surplus goods .. .. .. 
Imports under annual 
licences for the armed 
forces and for the mining and petroleum industry .. .. .. National security Decree No.1573 
of 2002 
Imports by public entities, except for petrol 
and urea .. .. .. .. .. 
Goods to be imported by 
the National Narcotic 
Drugs Fund National 
Narcotic Drugs 
Fund Mostly between headings 
2913000000 and 
2939999000 102 Security Annex 3  
Imports through 
INDUMIL INDUMIL Arms industry inputs of 
Chapters 28, 29, 31, 35, 36, 
38, 39, 76, 90;  final goods and parts of Chapter 93 
(arms) 107 Security Annex 4 
Goods subject to trade 
protection measures .. Imports subject to anti-
dumping, countervailing 
and safeguard measures Variable Trade protection 
against unfair 
practices  Annex 6 
Goods included in the 
finalization of the 
temporary to outright importation regime .. .. .. .. .. 
.. Not available. 
Source : Prepared by the WTO Secretariat, on the basis of Decree No. 4406 of 2004, as amended by Decree No. 1846 of 
2005 and External Circular No. 077 of 2002.  The references to Annexes in this table relate to the Annexes to 
External Circular 077 of 2002. 
87. Article 77 of Decree-Law No. 444 of 196748 establishes the criteria to be taken into account in 
assessing applications for non-automatic prior licences.  These criteria include:  (i) the satisfaction of 
consumption requirements and the maintaining or rais ing of the level of employment generated by the 
goods to which the application relates;  (ii) their contribution to the promotion and diversification of 
exports;  (iii) whether there is domestic production that is supplying the demand in the region of 
destination of the goods and the need for fair competition with respect to price and quality. 
88. Prior licences are valid for six months (12 months for capital goods) and can be extended 
once for three months, with further extensions in sp ecific cases if justified and if application is made 
before the licence expires.  A prior licence may be re fused for failure to meet the requirements or for 
inaccurate data.  The applicant is informed of the re asons for the refusal and may apply for reversal of 
the decision under the Administrative Disputes Code. 
89. According to the authorities, the percentage of prior import licence applications approved 
annually is, on average, about 80 per cent. 
                         
48 See:  http://www.mincomercio.gov.co/VBeContent/documents/normatividad/decretos/decreto_ley_ 
444_1967.pdf. WT/TPR/S/172 Trade Policy Review 
Page 44 
 
 
90. Imports of poultry cuts (headings 02.07 and 16.02) are subject to prior licensing, in 
accordance with Foreig n Trade Council Resolutions Nos. 12 of 1993 and 4 of 1998.  
91. Decree No. 4665 of 2005 created an authorizati on mechanism for importing textile materials 
and manufactured textile articles, footwear and parts thereof.  Importers are only authorized to import 
goods of this type up to an annual f.o.b. value e quivalent to 200 per cent of the liquid (financial) 
assets declared by the importer in the import author ization application.  To import goods that exceed 
this limit prior authorization must be re quested from DIAN.  Decree No. 1299 of 200649 introduced 
changes in this mechanism that exclude imports of goods originating in member countries of the 
Andean Community and countries with which Colo mbia has free trade ag reements in force. 
(c) Automatic import licences 
92. Certain goods are subject to import author izations, registrations or approvals.50  Decree 
No. 4406 of 2004 abolished import registration for imported goods for which minimum descriptions 
were required and Decree No. 4553 of 2005 abolished registration for imports made under the special 
import-export programme. 
93. Automatic licences must be processed by the Fo reign Trade Directorate of the MCIT as a 
prerequisite to the filing of the customs import d eclaration.  Circular 077 of 2002 and its Annexes 
define the products subject to registration or auto matic licensing, which include mainly goods in the 
pharmaceutical, medical equipment and agricultural product sectors (Table III.5). 
Table III.5 
Requirements for the granting of import licences 
Nature of requirement Authorizing 
entity Example of type of 
products Number of 
subheadings Justification Legal 
measure 
Register as importer and approval of products  Ministry of 
Transport Automotive sector, 
subheadings 
87.01.20.00.00 to 87.16.40.00.00 54 Safety of passengers 
and passers-by, and 
traffic control Annex 7  
Approval or official letter of 
authorization  Colombian 
Institute of 
Geology and Mining Radioactive material of 
headings 28.44, 28.45 and 
28.46.  Equipment using radioactive power sources 53 Environmental 
protection, 
elimination of risks to human health Annex 10 
Authorization resolution and 
approval  Colombian 
Institute of 
Rural Development - INCODER Fish and crustaceans of 
Chapters 03, 16 and 23 139 Health and 
management of 
species Annex 11 
Phytosanitary permits;  
animal health permits;  sales 
licences;  input documents;  evidence of authorization of 
importation of raw materials;  
sales licence in the importation of raw materials for products containing those raw materials Colombian 
Agricultural 
Institute - ICA Animals and plants, and 
their products;  agricultural 
and livestock inputs, 
processed  products 1,131 Sanitary and 
phytosanitary 
protection Annex 12 
    Table III.5 (cont'd)  
                         
49 This measure entered into  force on 1 July 2006. 
50 Articles 2 and 3 of Decree No. 2680 of 1999 specify for approval the prior paperwork and import 
permits required in connection with products subject to va rious registrations;  technical standards;  phytosanitary 
and zoosanitary permits;  sales licence or registration;  cer tificates;  safeguard restrictions;  controls;  absorption 
policy. Colombia WT/TPR/S/172 
 Page 45 
 
 
Nature of requirement Authorizing 
entity Example of type of 
products Number of 
subheadings Justification Legal 
measure 
Approval for raw materials 
and medical equipment, 
and/or health registration for 
finished productsa  National 
Institute for the 
Surveillance of Food and Drugs - INVIMA Medicaments, foodstuffs, 
cosmetics and medical 
equipment, substances in vivo for diagnostic 
purposes in human 
medicine;  cleaning products and pesticides for 
domestic use;  alcoholic 
beverages;  raw materials for human use or consumption;  appliances 
for use in medicine or 
dentistry 1,772 Protection of human 
health Annex 18 
Authorization  Thirteenth 
Brigade of the 
Armed Forces  Special-purpose armoured 
vehicles;  clothing and 
textiles for the exclusive use of the military and the National Police .. National security Annex 16 
Sanitary registration and 
approval Ministry of 
Social Welfare Insecticides, products of 
headings 38.08.10.11.00 
and 38.08.90.90.00 19 Protection of health 
and the environment Annex 13 
Certificate of conformity 
with the Colombian technical 
regulations Supervisory 
Authority for 
Industry and 
Trade (SIC) Safety glass for vehicles, 
gas domestic appliances, 
components for electrical installations, pressure cookers, water heaters 138 Safety, sanitary or 
phytosanitary 
protection, environmental protection Annexes 
19.1 and 
19.2 
Approval (the importer must 
certify that the fuel is safe to 
store) Ministry of 
Mining and 
Energy Liquid and gaseous fuels of 
headings 27.10 and 27.13  31 Safety, consumer 
protection Annex 14 
Approval Supervisory 
Authority for 
Surveillance 
and Personal 
Security Products of Chapters 85, 
90, 93 (closed circuit TV, 
products used for espionage, etc.) 48 Security and control Annex 17 
CITES authorization  
- Approval 
- Dynamic test emission certificates Ministry of the 
Environment Species defined in the 
International on 
International Trade in 
Endangered Species of 
Wild Fauna and Flora Sources: 
- Ozone-depleting 
substances - Domestic refrigerators - Motor vehicles  
 
 
 
  
40 
 
10 37 Environmental 
protection Laws 
Nos. 17 of 
1981 and 
573 of 
1997 
.. Not available. 
a In 2003, INVIMA approval for the importation of cosmetic raw materials was abolished (External Circular No. 01 of 
 2003). 
Source : Prepared by the WTO Secretariat, on the basis of Extern al Circular No. 077 of 2002 a nd its amendments;  Decrees 
Nos. 4406 of 2004 and 1846 of 2005 and information supplied by  the authorities.  The references to Annexes in 
this table relate to the Annexes to  External Circular No. 077 of 2002 . WT/TPR/S/172 Trade Policy Review 
Page 46 
 
 
(viii) Anti-dumping, countervailing and safeguard measures 
(a) General provisions 
94. The main provisions relating to trade protection measures are:  (i) Decree No. 991 of 1998 on 
anti-dumping (AD) measures;  (ii) Decrees Nos. 152 of 199851 and 1480 of 2005 on multilateral 
safeguards;  and (iii) Decree No. 299 of 1995 on countervailing measures against subsidies.  
95. Within the Andean Community context, the main trade protection measures are:  (i) for 
dumping and third-country subsidies, Decisions Nos. 283 of 1991, and at CAN level Decision 
No. 456 of 1999;  (ii) for intracommunity subsidies, Decision No. 457 of 1999;  (iii) for intracommunity safeguards, Chapter XI of the Ca rtagena Agreement and Decision No. 563 of 2003;  
for third-country safeguards, Decision No. 452 of 1999. 
96. The Colombian authority competent for inves tigating dumping, subsidy and safeguard cases 
is the Foreign Trade Directorate of the MCIT  through the Trade Practices Subdirectorate.
52 
97. Applications for the investigation of dumping,  subsidies and safeguards relating to products 
originating in the Andean countries are dealt with by the CAN General Secretariat in accordance with 
Decisions Nos. 283 of 1991, 452 of 1999, 456 of 1999, 457 of 1999 and 563 of 2003.  With respect to 
products originating in countries which are not members of the Andean Community, Decisions 
Nos. 283 of 1991 and 452 of 1999 ap ply.  Applications for investig ations may be submitted both by 
domestic producers and by the governments of CAN countries. 
(b) Countervailing measures 
98. During the period 1996-2006, Colombia did not adopt any countervailing duties nor did it 
initiate any subsidy investigations.53 
99. According to the authorities, within the And ean context the CAN General Secretariat has 
considered four investigations concerning  subsidies but none involved Colombia. 
(c) Anti-dumping measures 
100. Colombia notified its legislati on on anti-dumping measures in 1995.54  A s  n o t e d  i n  t h e  
previous review, Colombia has replied to questions on various aspects of its legislation.  The issues 
raised include, for example, anti-circumvention measures, price undertakings, judicial review, 
application of provisional duties, currency conversi on, comparison of normal value, final liability and 
refunds, comparison methodology, and sales below cost.55 
                         
51 Decree No. 152 of 1998 establis hes the procedures for the adoption of general and transitional 
safeguard measures for products covered by the Agr eement on Textiles and Clothing and special safeguard 
measures for agricultural products. 
52 http://www.mincomercio.gov.co/VBeContent/NewsDetail.asp?ID=2551&IDCompany=10. 
53 WTO documents G/SCM/N/30 of 2 July 2003, G/SCM/N/40 of 1 July 1998, G/SCM/N/47 of 
1 August 1999, G/SCM/N/62 of 28 June 2000, G/SCM/N/81 of 3 January 2002, G/SCM/N/98 of 10 June 2003, 
G/SCM/N/106 of 5 January 2004, G/SCM/N/113 of 30 June 2004, and G/SCM/N/130/Add.1/Rev.1 of 
24 April 2006. 
54 WTO document G/ADP/N/1/COL/1 of 3 April 1995. 
55 WTO documents G/ADP/W/164-G/SCM/W/171 of 24 November 1995, G/ADP/W/200-
G/SCM/W/207 of 28 November 1995, G/ADP/W/224-G /SCM/W/234 of 1 December 1995, and G/ADP/W/228-
G/SCM/W/238 of 1 December 1995. Colombia WT/TPR/S/172 
 Page 47 
 
 
101. The objective of Decree No. 0991 of 1998, which governs the application of AD duties, is to 
regulate the protection of domestic industry from unfai r practices.  According to the legislation in 
force, investigations are conducted in the general interest and AD duties are imposed in the public 
interest and applied in a general manner to an y importer of the goods subject to the duties. 
102. The MCIT determines the definitive or provisi onal AD duties, the amount being expressed as 
an ad valorem  percentage or by establishing a base pr ice.  Provisional duties are applied if a 
preliminary conclusion is reached that imports are being dumped and are causing injury to the 
domestic industry.  This action is ta ken by resolution which can only be revoked directly and after the 
investigated party has exercised its right to a fair  hearing.  No imported product can be subjected to 
both AD and countervailing duties at the same time.  
103. The MCIT can initiate proceedings ex offici o or on written application.  The current 
legislation permits undertakings to  revise export prices or to cease exporting at dumped prices, but 
these expressions of intent can only be submitted  during the two months following the date of 
publication of the resolution containing the pre liminary determination.  The MCIT can suggest 
undertakings but no exporter can be forced to acc ept them.  However, the authorities are free to 
determine whether a threat of injury might be realized. 
104. Decisions may be the subject of proceedings before the MCIT to seek revocation of the 
administrative measure that initiated the investigati on or imposed a provisional or definitive anti-
dumping or countervailing duty.  Up to mid-2006, proceedings against the initiation of an investigation had been instituted in the case of cold-rolled steel from Russia and provisional anti-
dumping duties had been imposed on imports of polyester filament from China. 
105. Since 1996, Colombia has made use of both WTO and Andean Community anti-dumping 
proceedings.  In both cases,  provisional and defin itive duties were applied (Table III.6).  Up to 
December 2005, Colombia had AD measures in force against import s of tableware and kitchenware 
(China).  Moreover, by Resolution No. 0388 of 2006, the MCIT imposed definitive anti-dumping 
duties on imports of PVC balls originating in Chin a.  At Andean level, by Resolution No. 1761 of 
2005, Colombia imposed provisional anti-dumping duti es on imports of rough boards originating in 
Venezuela, in accordance with R esolution No. 939 of the Andean Community General Secretariat.  
By Resolution No. 1700 of 1 August 2006, the pr ovisional anti-dumping duties imposed on imports of 
rough boards were terminated, in accordance with  Resolution No. 1036 of the Andean Community 
General Secretariat. 
Table III.6 
Relationship between anti-dumping measures and domestic consumption of the products concerned 
Type of 
product Product Origin of imports Investigation
initiated Provisional 
duties Definitive 
duties Period of 
application of 
the duty 
Mechanical 
engineering Chromium-plated 
sheet USA 03/05/1994 No Yes 03/05/1995 – 
03/05/2000 
 Cold-rolled steel Russia, Ukraine, 
Kazakhstan 04/09/1998 Yes Yes 24/03/1999 – 
24/03/2004 
 Iron or steel wire 
rod Russia 12/03/1999 Yes Yes 10/11/1999 – 
10/11/2004 
 Tin plate Netherlands 14/05/1999 No Yes 03/12/1999 – 
03/12/2004 
 Hot-rolled steel Russia, Ukraine, 
Kazakhstan 22/03/2000 No Yes 23/11/2000 – 
23/11/2005 
 
     Table III.6 (cont'd)  WT/TPR/S/172 Trade Policy Review 
Page 48 
 
 
Type of 
product Product Origin of imports Investigation
initiated Provisional 
duties Definitive 
duties Period of 
application of 
the duty 
 Low-carbon wire 
rod Trinidad and Tobago 29/11/2002 Yes Yes 26/12/1997 – 
26/12/2002 
Chemical Orthophosphoric 
acid Belgium 09/05/1991 Yes Yes 13/05/1992 – 
26/01/1998 
 Orthophosphoric 
acid USA 14/08/1991 Yes Yes 14/08/1992 – 
14/08/1997 
 Fertilizer, coffee 
grade Belgium 04/02/1993 Yes Yes 30/11/1993 – 
30/11/1998 
 Polypropylene 
homopolymer USA 18/06/1993 Yes Yes 18/03/1994 – 
18/03/1999 
 Ethyl acetate USA 04/10/1993 Yes Yes 01/07/1994 – 
01/07/1999 
 Orthophosphoric 
acid  China 16/04/1996 No Yes 21/10/1996 – 
21/10/2001 
 Orthophosphorica 
acid Belgium and USA 26/01/1998 n.a. Yes 13/07/1998 – 
13/07/2003 
 Fertilizer, coffee 
gradea Belgium 11/11/1998 n.a. Yes 06/10/1999 – 
06/10/2004 
 Polypropylenea 
homopolymer USA 25/02/1999 n.a. Yes 27/12/1999 – 
27/12/2004 
 PVC resins USA 26/08/1998 No  05/03/1999 – 
05/03/2004 
 Polypropylenea 
homopolymer USA 25/10/2002 n.a. Yes 27/10/2003 – 
27/12/2004 
 Orthophosphoric 
acida Belgium and USA 01/10/2002 n.a. No n.a. 
 PVC resinsb USA 04/02/2004 n.a. No n.a. 
Textiles Polyester fibres South Kor ea and Indonesia 11/10/2001 No No n.a. 
 Textured filament Malaysia;  Chinese Taipei;  
Indonesia and Thailand 30/10/2001 Yes No 10/01/2002 – 
24/06/2002 
Final goods Standard tyres South Korea 09/10/1998 No No n.a. 
 Tableware and 
kitchenware and 
loose articles of porcelain or china China 09/02/2004 No No n.a. 
 Tableware and 
kitchenware and 
loose articles of earthenware China 09/02/2004 No Yes 17/12/2004 – 
17/12/2009 
 Balls China 25/05/2005 No Yes 06/03/2006 – 
06/03/2011 
Total   25 8 18  
.. Not applicable. 
a Review of investigation initiated before 1996.  Note: The provisional or definitive duties mark ed (Yes) are calculated as the difference between the base price stipulated by t he 
Government and the f.o.b. price declared by the importer. 
Source:  Prepared by the WTO Secretariat, on the basis of information supplied by the authorities (MCIT) and Colombia's 
notifications to the WTO. 
106. The AD measures adopted by Colombia since 1996 are characterized by the following:  
having been adopted for the most part in connection with imports of inputs;  the origin varies but the 
imports mainly come from industrialized countries;  and most of the investigations resulted in 
definitive duties (Table III.6).  Moreover, sever al imported products subject to AD proceedings Colombia WT/TPR/S/172 
 Page 49 
 
 
constitute a substantial proportio n of Colombian domestic consumption of those  same goods 
(Table III.7). 
Table III.7 
Relationship between anti-dumping measures and domestic consumption of the products concerned 
Product Exporter Percentage of Co lombian domestic consumption 
Porcelain or china 
tableware and kitchenware  China  87 per cent in 2005 (second half) and 90 per cent in 2004 (32.5 per cent 
for earthenware) 
Polyester fibres  South Korea  32.6 per cent in 2001 (first half) 
Polyester filaments, 
texturized Indonesia, Malaysia, 
Thailand and Chinese Taipei Each of the four territories listed s upplied 23 per cent of the market in 
2000 
Hot-rolled steel  Ukraine  14.5 per cent in 2000 (second half) 
Tin plate  Netherlands  20 per cent in 1998 
Cold-rolled steel  Kazakhstan, Russia and 
Ukraine  Russia and Ukraine supplied 42 per cent of  the market in the first half of 
1999 and Kazakhstan supplied the same percentage in 1998 
Source : WTO Secretariat, on the basis of Colombia's notifications. 
107. As Table III.6 shows, Colombia has applied 25 AD measures since 1996.  Out of these, seven 
investigations began before 1996 and their peri od of application extended beyond 1996.  After 
January 1996, 18 new investigations  were initiated;  in 8 cases provisional duties were imposed and in 
18 definitive duties.  Out of the total number of measures adopted between January 1996 and 
March 2006, 21 measures (84 per cent) were against imports of non-agricultural inputs and 4 (16 per 
cent) against final products;  of the 10 new inves tigations begun since 2000, tw o were concerned with 
textile products. 
108. The AD duties ( ad valorem ) applied fluctuated between 52 and 64 per cent, or other duties 
calculated on the basis of the difference between the base price stipulated by the Government and the 
f.o.b. price declared by the importer were established.   
109. In the Andean regional context, since 1996 the Andean Community General Secretariat has 
initiated 15 dumping investigations, as a result of which Colombia adopted four AD measures:  on 
imports of wood boards from Venezuela (2005);  A ndean imports of polypropylene film (2002);  
stainless-steel sinks from Venezuela;  and provisional duties on sanitary containers of tin plate from Ecuador (1999).
56  In 2003, the CAN General Secretariat decided that a duty of US$70 per tonne 
should be imposed on sorbitol imported from the European Union (France), on the basis of an application submitted by a sorbitol producer in Ec uador who supplies the markets of Colombia and 
the other Andean countries. 
(d) Safeguard measures 
110. Decree No. 152 of 1998 authorizes the applica tion of safeguard measures if imports of a 
particular product have increased substantially  and the product is being imported under such 
conditions as to cause or threaten to cause serious in jury to the domestic industry that produces like or 
directly competitive products.  The measures ar e applied to all imports of the product under 
investigation irrespective of their origin. 
111. Within the Andean Community c ontext, there is a special safeguards regime that applies to 
goods originating in the CAN.  The rights and ob ligations of Article XIX of the GATT 1994 are 
maintained with respect to Colo mbia's preferential agreements under the G-3 and with MERCOSUR. 
                         
56 See http://www.comunidadandina.org/canproc edimientosinternet/procedimientos.aspx. WT/TPR/S/172 Trade Policy Review 
Page 50 
 
 
112. The application of a general safeguard measure usually consists in the imposition of a tariff 
levy for not more than four years, including the peri od of application of the provisional measure;  if it 
is extended the total period of application may not ex ceed eight years.  If a measure is adopted for an 
initial period of more than three years, the situation is reviewed at mid-term to determine whether it is 
necessary to maintain the measure.  There is al so a requirement to evaluate the adjustment 
programme.57 
113. Since 1996, Colombia has notified the WTO of nine safeguard investigations within the 
context of the Agreement on Safeguards and Section 16 of China's Protocol of Accession to the WTO.  
Four of these investigations resulted in provisional measures and one in a definitive measure 
(Table III.8).  The application of safeguard measur es has been focused on final consumer goods in the 
textile sector.  The origin of the imports varies but  is concentrated, in particular, on imports from 
China. 
114. Within the context of China's Protocol of Accession to the WTO, in November 2005 an 
investigation of imports of clothing from China was initiated58 and this was followed in January 2006 
by the initiation of another investigation of imports of other made-up products  from China.  In March 
2006, Colombia agreed with China to suspend the temporary safegua rds on textile and hosiery sector 
products.  The authorities state that instead Co lombia has adopted import quotas (for 90 calendar 
days) while evidence for initiating a dumping investigation is gathered. 
Table III.8 
Safeguard investigations (excluding special agric ultural safeguards) notified to the WTO, 1996-2006 
Type of 
product Product Initiation/applica
nt Origin of 
imports  Decision Relevant notifications 
to the WTO 
Textile Made-up products  
61.07.11.00.00, 
61.07.12.00.00 and 
61.07.19.00.00 
61.08.21.00.00 61.08.22.00.00 
61.08.29.00.00 
62.12.10.00.00 62.12.30.00.00 61.10.11.00.00 
61.10.12.00.00 
61.10.19.00.00 61.10.20.00.00 
61.10.30.10.00 
61.10.30.90.00 61.10.90.00.00 28.11.05 
Colombian 
producers China Investigation in progress 
and provisional 95% 
safeguard on three 
products of group 61.07.  
Resolution No. 0097 of 2 May 2006 closed the 
investigation of the other 
products  G/SG/N/16/COL/3, 
23.02.2006 
 
G/SG/N/16/COL/4/Rev.1, 
07.07.2006  
G/SG/N/16/COL/4, 
26.06.2006 
Textile Made-up products 
61.09.10.00.00,  
61.09.90.10.00 and 
61.09.90.90.00 02.01.2006 
Colombian 
producers China Investigation in progress .. 
Table III.8 (cont'd) 
    
 
                         
57 Decree No. 1.407 of 28 July 1999 temporarily introduced, from 28 July 1999 to 31 December 2000, 
a different procedure for applying a safeguard, with a maximum of two years' application based only on tariffs. 
58 Subheadings 61.07.11, 61.07.12, 61.07.19, 61.08.21, 61.08.22, 61.08.29, 62.12.10 and 62.12.30, 
investigation opened by Resolution No. 662 (29 November 2005). Colombia WT/TPR/S/172 
 Page 51 
 
 
Type of 
product Product Initiation/applica
nt Origin of 
imports  Decision Relevant notifications 
to the WTO 
Textile  Hosiery 
61.15.11.00.00, 
61.15.12.00.00, 61.15.19.00.00, 
61.15.20.20.00, 
61.15.20.90.00, 61.15.91.00.00, 
61.15.92.00.00, 
61.15.93.90.00 and 61.15.99.00.00 16/08/2005 China Provisional safeguard of 
88% applied to products 
of tariff headings 61.15.92.00, 
61.15.93.20, 61.15.93.90 
and 61159900.  Resolution No. 0074 of 
24 March 2006 ordered 
the closure of the investigation  G/SG/N/16/COL/2/Suppl.1, 
28.04.2006 
 
Textile Textiles classified 
in 16 groups 01.08.2005 
Protela and 
Lafayette, Coltejer, 
Fabricato, Crystal 
S.A., Vestimundo, Calcetería National China To apply provisional 
measures to imports in 
72 tariff subheadings.  
Resolution No. 0046 of 
6 March 2006 ordered the closure of the 
investigation  G/SG/N/16/COL/1 and 
G/SG/N/16/COL/2, 
03.10.2005 
G/SG/N/16/COL/1/ 
Suppl.1, 21.03.2006 
Electric  Electric blenders 
85.09.40.10.00 26.01.2004 
Groupe SEB 
Colombia S.A. All WTO 
Members Investigation terminated 
without measures being 
imposed  G/SG/N/6/COL/3, 
10.05.2005 and 
G/SG/N/9/COL/3, 
10.05.2005 
Electric Electric smoothing 
irons 
85.16.40.00.00 26.01.2004 
Groupe SEB 
Colombia S.A. All WTO 
Members Investigation terminated 
without measures being 
imposed G/SG/N/6/COL/2, 
02.03.2004 and 
G/SG/N/9/COL/2, 10.05.2005 
Automotive Taxis 87.03.22.00, 
87.03.23.00, 
87.03.31.00, 87.03.32.00 28.06.1999 
Sofasa S.A. All WTO 
Members Investigation terminated 
without measures being 
imposed G/SG/N/1/COL/2, 
25.05.1998 
G/SG/N/6/COL/1 06.08.1999 
G/SG/N/9/COL/1, 
24.10.2000 
Textile Filament yarn, plain 
and textured 
54.02.33.00.00 and 
54.02.43.00.00 06.05.1998 
Enka de Colombia 
S.A. and Polímeros 
Colombianos S.A. South Korea, 
USA, Thailand, 
Malaysia and 
Japan Safeguard on imports of 
subheading 
54.02.43.00.00 from 
South Korea and Thailand .. 
Woven 
fabrics  Denim  17.07.1998 India and Brazil .. .. 
Textile Textiles and made-
up products 28.06.1996 
Ministry of 
Finance and 
Ministry of 
Foreign Trade Chinese Taipei, 
North Korea, 
China and 
Panama Provisional measure of 
80% on products of 168 
subheadings and 85% on 
products of 11 
subheadings originating in Chinese Taipei;  80% 
on products of 
50 subheadings and 85% on products of 8 subheadings originating 
in North Korea;  80% on 
products of  43 subheadings  .. 
Table III.8 (cont'd) 
 WT/TPR/S/172 Trade Policy Review 
Page 52 
 
 
 
Type of 
product Product Initiation/applica
nt Origin of 
imports  Decision Relevant 
notifications to the 
WTO 
Textile Cotton textiles 
classified in 
17 groups 09.06.1996 
Coltejer, Fabricato, 
Tejicondor and Coltejer-CI Panama, China, 
Chinese Taipei, 
North Korea, South Korea, 
Indonesia, 
Hong Kong, Malaysia, 
Philippines, 
Singapore, India, Pakistan, 
Turkey, 
Thailand, Egypt, 
Bangladesh, 
Sri Lanka Decision to apply measures 
to four groups of imports .. 
.. Not available. 
Source : Prepared by the WTO Secretariat, on the basis of inform ation supplied by the authorities (MCIT) and notifications 
to the WTO. 
115. At Andean Community level, 34 safeguard measur es have been applied since 1997;  of these 
the following were applied by Colombia:  on impor ts of rice from Peru and Venezuela (2005);  sugar 
originating in the Andean countries (2003-2004);  rice from the Andean countries and refined 
vegetable oils (2002-2003);  rice and completely neutral alcohol originating in Andean countries 
(2000-2001);  rice from Ecuador and all imports from Ecuador (1999).59 
116. Of the nine measures applied by Colombia, th e CAN General Secretariat decided that none 
could be sustained.  The main arguments on which th e CAN decisions rested were that:  (i) disruption 
of domestic sugar, vegetable oil, rice and alcohol pr oduction had not been demonstrated;  and (ii) the 
safeguard for offsetting Ecuador's devaluation wa s not an appropriate measure for dealing with 
sectoral problems and the evidence did not provide ar guments in favour of the measure inasmuch as 
most of the problems were unconnected with pr ocesses directly related to the devaluation. 
117. Colombia notified the WTO of its  safeguard regulations in 199860 and received questions 
from two Members61;  Colombia answered62 the questions of one Member.  The questions covered the 
following aspects of the Colombian legislation:  inv estigation, application, duration and review of 
measures;  time limits for presenting views, holdi ng hearings and formulating preliminary and/or 
definitive conclusions;  publication of reports;  definition and use of the identical, like or directly 
competitive product;  consideration of the requirement to "facilitate adjustment";  use of measures that 
extend over more than three years;  and definition a nd use of the "threat of serious injury" criterion. 
118. Colombia reserves, but has made no use of63, the right to apply the special safeguard under 
the WTO Agreement on Agriculture in respect of 57 four-digit tariff lines.64 
                         
59 See http://www.comunidadandina.org/canproc edimientosinternet/procedimientos.aspx. 
60 WTO document G/SG/N/1/COL/2 of 25 May 1998. 
61 WTO documents G/SG/Q1/COL/1 of 19 November 1998, and G/SG/Q2/COL/1 of 18 November 1999. 
62 WTO document G/SG/Q1/COL/2 of 26 March 1999. 
63 WTO documents G/AG/N/COL/27 of 4 May 2005, G/AG/N/COL/25 of 28 May 2001, 
G/AG/N/COL/22 of 21 August 2000, G/AG/N/COL/17 of 30 April 1999, G/AG/N/COL/9 of 7 July 1998 and 
G/AG/N/COL/5 of 30 June 1997. 
64 Schedule LXXVI - Colombia, Part I - Most Fa voured Nation Tariff, Section I - Agricultural 
Products, Section I - A Tariffs. Colombia WT/TPR/S/172 
 Page 53 
 
 
119. Colombia has reserved the right to make u se of the transitional safeguard mechanism 
provided for in the WTO Agreement on Textiles and Clothing.  In 1999, the WTO Textiles 
Monitoring Body (TMB) presented a report on the safe guard applied by Colombia to imports of plain 
polyester filaments originating in Thailand and South Korea.65  The report noted that there were 
concerns relating to product definition, re presentativity and the methodology for submitting 
information for the determination of serious damage in these cases.66 
120. Likewise, in relation to the safeguard adopted by  Colombia in 1998 on imports of denim from 
India and Brazil, at its session No. 47 the TMB found  that Colombia had not shown that its industry 
had suffered serious damage.  Colombia endorsed  the recommendation and revoked the measure.67 
121. In 199768, Colombia notified a bilateral agreemen t with the United States on textiles and 
apparel concluded in order to im plement restrictions notified to the TMB under Article 2.1 of the 
Agreement on Textiles and Clothing. 
122. Colombia notified that on 1 January 2005 it would integrate into the GATT 1994 all of the 
textile and clothing products covered by the Agreement on Textiles and Clothing that were not 
integrated during the first three stages of integration.69 
(ix) Standards and technical regulations  
123. The policy on standards and technical regulations  is defined in Law No. 170 of 1994, and in 
Decrees Nos. 2269 of 1993, 300 of 1995, 1112 of 1996 and 2360 of 2001.  Among the main recent 
provisions concerning standards and technical re gulations Decrees Nos.  219 and 2522 of 2000 and 
210 of 2003 and Resolutions Nos. 3742 and 8728 of 200170,  which include criteria for issuing 
technical regulations, deserve mention. 
124. Decree No. 300 of 1995 established the obligation to produce a certificate of conformity as a 
requirement for the approval of the registration of  imports subject to compliance with technical 
regulations.  The same Decree stipulates that the Supervisory Authority for Industry and Trade (SIC) 
will define the procedures for the recognition of  certificates, in accordance with implementing 
Resolution No. 6050 of 1999 and its amendments and additions included in Title IV of the SIC's 
Single Circular.  Resolution No. 25391 of 200271 established the mandatory registration of controlled 
products, that is to say, those subject to complian ce with what were mandatory official Colombian 
technical standards and technical regulations unde r the authority of the SIC.  The certificate of 
conformity, which may be by brand, type or batc h, is the requirement for marketing and importing 
products, in accordance with Decree No. 300 of 1995. 
                         
65 The review of this safeguard measure by the TMB features in WTO document G/TMB/R/51 of 
11 February 1999. 
66 WTO document G/TMB/N/344 of 28 June 1999. 
67 Foreign Trade Council Resolutions Nos. 005 and 007 of 1998.  WTO document G/TMB/N/338 of 
7 October 1998. 
68 WTO document G/TMB/N/266 of 22 July 1997. 
69 WTO documents G/TMB/N/483 of 6 August 2004, G/TMB/N/366/Rev.1 of 31 January 2001 and 
G/TMB/N/366 of 8 January 2001. 
70 The legal background consists mainly of Decree  No. 2269 (National Standardization, Certification 
and Metrology System);  Decree No. 1112 (National System of Information on Standardization Measures and 
Conformity Assessment Procedures;  harmonization of the issuing of technical regulations). 
71 Resolution No. 25391 of 5 August 2002, Supervisory Authority for Industry and Trade. WT/TPR/S/172 Trade Policy Review 
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125. During the period under review, four categories72 relating to standards and technical 
regulations were used:  the Technical Standard (NT), the Colombian Technical Standard (NTC), 
Technical Regulations (RT) and the Mandatory Offi cial Colombian Technical Standard (NTCOO).  
NTs are voluntary, based on consensus and approved by a recognized body.  NTCs are also voluntary 
and approved by a national standa rdization organization.  RTs73 are mandatory and issued by the 
competent authority. 
126. NTCOOs were mandatory and declared as su ch by the National Standards and Quality 
Council.  In practice, NTCOOs performed the func tion of the technical regulations defined in the 
Agreement on Technical Barriers to Trade (TBT).  A considerable number and range of products were 
kept regulated under NTCOOs.  The authorities note that Decrees Nos. 2522 of 2000 and 2360 of 
2001 provided for a review of the NTCOOs to e liminate their mandatory effect.  As a result, 
Colombia notified the WTO of the elimination of numerous NTCOOs.74  According to the authorities, 
this review process led to the elimination of all NTCOOs as from 28 February 2003, pursuant to Resolution No. 283 of 2003. 
127. The MCIT is the authority that defines quality  and standardization po licies.  Under this 
mandate, the MCIT administers the National Sta ndardization, Accreditation, Certification and 
Metrology System (SNNCM).  The SIC
75, under the MCIT, is entrusted with:  organizing and 
coordinating the national certification system;  administering the national industrial quality control, weights, measures and metrology programmes;  or ganizing the primary quality control and metrology 
laboratories;  authorizing activities;  and overseeing the proper functioning of the certification entities.  
128. The following participate in the SNNCM:  (i) the MCIT;  (ii) the entities authorized to issue 
RTs;  (iii) the Colombian Technical Standards Institute (ICONTEC), whic h is responsible for 
coordinating the drafting and dissemina tion of NTCs;  (iv) the Sectoral Standardization Units;  (v) the 
SIC;  (vi)  the Technical Advisory Council for Accreditation;  (vii)  the Sectoral Technical Committees;  
(viii) the accredited Certification and Inspection Organizations;  (ix) the accredited Testing and Calibration Laboratories;  and (x) other entities w ith accreditation and control functions, such as the 
National Institute for the Surveillance of Fo od and Medicines (INVIMA) and the Colombian 
Agricultural Institute (ICA).
76 
129. ICONTEC is the national standardization or ganization which operates through a Board of 
Directors and a Technical Board. The Sectoral Standardization Units, which formulate sectoral standards, exist in parallel with ICONTEC.  The MCIT plays a supervisory role in ICONTEC to 
ensure transparency and participation and to  approve the annual voluntary standardization 
programme.  For the purpose of preparing NTCs , ICONTEC has 205 technical committees of which 
153 are active in 2006.  The authorities have indi cated that in mid-2006, the ICONTEC database 
listed 5,350 NTCs in force, of which 1,102 were identical to ISO, IEC, CODEX, OIML or ITU standards. 
                         
72 Decree No. 2269 of 1993.  
73 Article 2 of Decree No. 2269 of 1993 defined the NTCOO as a Colombian Technical Standard, or 
part thereof, whose application has been declared manda tory by a competent national authority.  The Technical 
Regulation is defined as a Regulation of a mandatory nature, issued by the competent authority, with a basis in law,  which sets out technical requirem ents, whether directly or by referring to or incorporating the contents of a 
national, regional or international standard, technical specifications or a code of good practice. 
74 WTO documents G/TBT/N/COL/24 of 13 March 2003, G/TBT/N/COL/12 of 19 December 2001, 
G/TBT/N/COL/9 of 11 October 2001, G/TBT/N/COL/8 of 6 July 2001, G/TBT/N/COL/7 of 18 July 2001, 
G/TBT/N/COL/6 of 28 June 2001, G/TBT/N/COL/5 of 11 June 2001, and G/TBT/N/COL/3 of 26 April 2001. 
75 Resolution No. 8728 of 2001. 
76 WTO document G/TBT/W/239 of 24 June 2004. Colombia WT/TPR/S/172 
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130. Colombia has notified77 that the MCIT is responsible for applying the TBT Agreement and 
administering the enquiry point for standardization, technical barriers to trade, sanitary and phytosanitary measures and conformity assessment pr ocedures.  It has notified that ICONTEC has 
accepted the Code of Good Practice for the Prepar ation, Adoption and Application of Standards.
78 
131. The general requirements for RTs are defined in  Decree No. 2360 of 2001, on the basis of 
SIC Resolution No. 3742 of 2001.  The preparation of  RTs is organized at two levels:  (i) ICONTEC, 
which issues the NTCs that serve as a basis for prep aring the RTs;  and (ii) the ministries, regulatory 
commissions and decentralized bodies that issue the RT s.  The adoption of RTs involves five stages:  
(i) announcement of the draft;  (ii) preparation of the draft;  (iii) formulation of comments within a 
period of not less than ten days;  (iv) notification of the definitive draft to the WTO and other bodies;  
and (v) legal adoption and notification to the WTO a nd other bodies.  The legal status of an RT is 
established by decrees and resolutions, and exceptionally by laws. 
132. According to the MCIT, at the beginning of 2006 there were more than 140 laws and 
administrative acts identified as technical regulations.  The Ministries of Social Welfare, Transport, 
and Mining, and Energy are the main authorities responsible for these RTs. 
133. During the period under review, according to the information supplied by Colombia in 
notifying its RTs, the two criteria most used in the preparation of RT were the protection of human life and health and the protection of consumers through the prevention of misleading practices.  The sectors in which most drafts were prepared were :  final products, chemical products and processed 
foods.  The authorities have pointed out that the RTs notified since 1996 account for 21.4 per cent of 
the RTs drawn up and of these 23.3 per cent are based on international standards. 
134. The methods for assessing and proving conformity may be contained in the same RTs and 
depend on the level of risk involved.  These meth ods include certification, inspection and testing, 
carried out by bodies accredited or designated by th e regulatory entity.  If mechanisms for proving 
conformity are not established in the RTs, the criteria of Title IV of the SIC Single Circular are applied. 
135. The SIC coordinates the Accreditation Commission and the Technical Advisory Council for 
Accreditation, in which consumers, Government, businessmen and accredited bodies all participate.  
The SIC accredits the various conformity assessment bodies which apply to be part of the SNNCM.  
The rules and procedures for accreditation are set out in  Resolution No. 8728 of 2001.  The four types 
of bodies that can be accredited ar e:  (i) certification bodies;  (ii) inspection bodies;  (iii) testing 
laboratories;  and (iv) calibration laboratories. 
136. In the period 1998-2004, the number of accredited bodies rose from 4 to 8 in product-
management certification, from 1 to 10 in inspection,  from 35 to 66 in the case of testing laboratories 
and from 13 to 49 in the case of calibration laboratories. 
137. There are other bodies, such as, for example, the Institute of Hydrology, Meteorology and 
Environmental Studies (IDEAM)
79 and the National Institute for th e Surveillance of Food and Drugs 
                         
77 WTO document G/TBT/2/Add.18/Rev.1 of 5 July 2005. 
78 WTO document G/TBT/CS/2/Rev.10 of 4 March 2004. 
79 Decree No. 1600 of 1994. Th e IDEAM is authori zed to accredit environmental laboratories 
belonging to the Environmental Information System.  WT/TPR/S/172 Trade Policy Review 
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(INVIMA)80, with accreditation responsibilities within th e regimes under their specific supervision 
and control. 
138. The accredited certification bodies subcontract the services of accredited laboratories for 
assessing the conformity of a product.  If there ar e no accredited laboratories in Colombia, the 
certification body must assess the technical comp etence of an non-accredited laboratory in accordance 
with standard NTC – ISO/IEC 17025. 
139. The certification of a foreign product by bodi es accredited abroad is accepted in Colombia 
provided that that country has a mutual recogniti on agreement with Colombia or is an Andean 
Community country and the certifying body is registered with the CAN General Secretariat. 
140. The SIC is responsible for verifying complia nce with the requirements relating to the 
labelling of products, whether domestic  or imported, only if the labelling requirements form part of 
technical regulations placed under SIC control.  The ICONTEC has developed voluntary Colombian 
labelling standards.  By Resolution No. 05109 of 2 005, Colombia repealed Resolutions Nos. 485 and 
1633 of 2005 which imposed labelling requirements fo r packaged food and raw materials for food for 
human consumption.81 
141. Given the existence of different accrediting bodies,  in some situations it may not be clear who 
has responsibility for accreditation and how the accredita tions granted by different bodies coexist, for 
example, those granted to laboratories by the INVIMA, IDEAM and SIC.82  In this connection, the 
SIC concluded that, although IDEAM, INVIMA a nd SIC are accreditation bodies, nevertheless the 
SIC is the only body that accredits within the SNNCM.  The other bodies assess the capacity and 
suitability of those that aspire to belong to the sy stems or regimes under their respective supervision 
and control.  
142. Between January 1995 and June  2006, Colombia submitted to  the WTO 120 notifications 
relating to the Agreement on Technical Barriers to Trade.83  In 2001, Colombia introduced the 
recommended period of 60 days or more for commenting on notifications.84 
143. At WTO level, on one occasion concerns were  expressed about Colombia's technical 
regulations on footwear labelling.85  Reference was made to the requirements in these regulations for 
information on the production materials used for the parts and information on the registration of the 
manufacturer and/or importer.  The authorities have indicated that a draft amendment to this RT has 
been published on the MCIT Web site.86  
144. At the Andean regional level, Decision No. 562 of 2003 established guidelines for the 
preparation, adoption and application of RTs in the member countries and at Community level.  The 
Andean Community has not produced any technical regulation under this decision.  The CAN has a 
                         
80 Decrees Nos. 677 of 1995 and 1545 of 1998.  The INVIMA accredits public entities in connection 
with the Registration and Licensing Regime, quality control and sanitary surveillance of medicines, 
pharmaceutical preparations based on natural resources, hygiene and cleaning products and other products for 
domestic use. 
81 WTO document G/TBT/N/COL/31/Add.4 of 22 February 2006. 
82 See case submitted to the SIC:  Case 04028422, File 113, of 14 May 2004, http://www.sic.gov.co/ 
Conceptos/Conceptos/2004/Mayo/04028422.php. 
83 WTO document G/TBT/18 of 17 February 2006; and the notifications submitted between January 
and June 2006. 
84 WTO document G/TBT/18 of 17 February 2006. 
85 Idem . 
86 See http://www.mincomercio.gov.co/VBeCont ent/NewsDetail.asp?ID =4010&IDCompany=15. Colombia WT/TPR/S/172 
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notification and counter-notification procedur e for receiving and commenting on drafts and 
facilitating the harmonization process.  Likewise,  Decision No. 615 provided the basis for the 
establishment of the CAN Notification and Technical  Regulation Information System, which serves to 
alert exporters to mandatory technical requirements.   
145. As a result of the work done in the CAN, it has been agreed that the period between the 
publication of a draft RT and its entry into force must not be less than six months (except where unfeasible).  Moreover, work is being done on the id entification of good regul atory practices with a 
view to preparing a guide.
87  There is an Andean standard based  on Decision No. 506  of 2001, which 
covers the bilateral recognition agreements th at Colombia has with Venezuela and Ecuador. 
(x) Sanitary and phytosanitary measures 
146. The application of sanitary and phytosanitary measures (SPS) in Colombia is organized at 
four levels:  (i) the Ministries of Social Welfare;   Agriculture;  the Environment, Housing and Land 
Development (MAVDT) and the Ministry of Trade, Industry and Tourism (MCIT) participate in the 
formulation of general policy;  (ii) the central t echnical coordination is undertaken by the Colombian 
Agricultural Institute (ICA), the National Ins titute for Surveillance of Food and Medicines 
(INVIMA), the Supervisory Authority for Industry and Trade (SIC) and the National Institute of 
Health (INS);  (iii) the operational work is done at local level mainly through the sectoral directorates 
and local offices of the ICA (livestock and agricultu ral health), the autonomous regional corporations 
(environmental matters) and the regional, department al, district and municipal health authorities and 
the INVIMA (public health);  and (iv) support activities through research centres, universities and the 
Corporación Colombiana de In vestigación Agropecuaria – CORPOICA (Colombian Agricultural 
Research Corporation).  
147. Agricultural health and food safety policy is defined in terms of improving the sanitary status 
of agri-food production;  protecting human life and health and that of  animals and plants;  preserving 
environmental quality; and impr oving competitiveness to satisfy the sanitary requirements of 
international markets.  The SPS system operates on the principle of harmonizing policies in the 
various sectors, in particular, agriculture, public h ealth, environment, trade, regional authorities, and 
the private sector. 
148. The MCIT is responsible for notifying SPS me asures to the WTO.  Between 18 April 1997 
and 16 August 2006, Colombia made  151 SPS-related notifications.  
149. The ICA is in charge of risk assessment an alysis and has responsibility for regulating, 
preventing, detecting, monitoring and eradicating phytosanitary and animal health problems.  The 
ICA has import and export checkpoints in 128 lo cal offices, which include 25 animal diagnostic 
centres, 17 plant diagnostic centres and 10 seed laboratories. 
150. The INVIMA, which is attached to the Ministry of Social Welfare, in coordination with the 
regional health authorities, is responsible for certifyi ng products of public health interest as fit for 
human consumption.  The INVIMA's Food and Alco holic Beverages Subdirectorate carries out risk 
assessment and epidemiological surv eillance activities in coordination with the National Institute of 
Health and regional health authorities. 
151. Under Law No. 715 of 2001, sanitary authority at  the points at which foodstuffs enter and 
leave the country is exercised by the regional h ealth authorities and these activities are supported and 
supervised by the INVIMA.  The regional heath authorities have 32 official laboratories which 
                         
87 WTO document G/TBT/W/239 of 24 June 2004. WT/TPR/S/172 Trade Policy Review 
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provide support for inspection, surv eillance and control.  This work  is supplemented by the National 
Public Health Surveillance System coordinate d by the National Institute of Health (INS). 
152. The decision on the adoption of an SPS measure is  defined as technical and is taken by the 
body responsible for risk assessment.  The auth orities have indicated that the commercial and 
economic impact of the adoption of a measure is us ually assessed on a case-by-case basis.  They have 
pointed out that this work has b een identified as an issue in connec tion with the strengthening of the 
SPS measures decision-making process. 
153. In 2005, a programme for the period 2006-2011 aimed at reorganizing phytosanitary and 
animal health regulations, control and surveilla nce was announced with Col$248,000 million (about 
US$106.9 million) allocated for investment in the w hole of the sanitary system.  During 2006, a start 
was made on implementing the national agricultural h ealth and food safety policy.  As part of the 
progress being made in applying this policy, the au thorities have drawn attention to the proposal to 
create a National SPS Commission;  the capacity-build ing programme for the INVIMA and the ICA;  
the improvement of the SPS information system;  the drawing up of a plan for the efficient utilization 
and improvement of plants of benefit to animals;   and the development of eight cooperation projects 
to promote the improvement and develop the scien tific, technological and operational capacity of the 
system. 
154. The basic laws on the application of SPM are the Political Constitution (Article 65:  
protection of domestic industry), Law No. 101 of 1 993 (agricultural and fisheries development), and 
Decrees Nos. 1840 of 1994 and 2141 of 1991 (functions  of the ICA).  Animal and plant health and 
primary food production are dealt with in Law No. 9 of 1979 and its regulatory decrees, Law No. 100 
of 1993 creating the INVIMA and Decrees Nos. 1290 of 1994 and 211 of 2004,  which determine its 
structure and function. 
155. The main provisions on SPS measures adopted in recent years include Decree No. 2833 of 
2006 creating the Intersectoral Commission on San itary and Phytosanitary Measures;  Decree 
No. 4003 of 2004 establishing the administrative procedure for drafting, adopting and applying 
technical regulations and sanitary and phytosanitary  measures in the agri-food  context;  Resolution 
No. 1277 of 2004 on the analysis of the risk of p est outbreaks and diseases;  and Decree No. 3075 of 
1997 on foodstuff inspection, surveillance and control.  Other provisions with a direct impact on imports and exports are:  Resolutions Nos. 1008 and 1381 of 1999, which determine the places for 
importing and exporting;  Resolution No. 0179 of 2002 creating the Import Valuation Committees;  
Resolution No. 1120 of 2002 on the mandatory phy tosanitary and animal health import document; 
Resolution No. 03336 of 2004 on sanitary measures for imports and exports of animals and animal 
products;  and Resolution No. 004 of 2005 on the regi stration with the ICA of foreign businesses 
wishing to export to Colombia live land and aquatic  animals and products thereof.  The food safety 
legislation includes, in particular, Decrees Nos.  2278 of 1982 and 2162 of  1991 on meat of bovine 
animals and meat by-products, Decree No. 616 of  2006 on the requirements relating to milk for 
human consumption, and Decree No. 2106 of 1983 on additives. 
156. There are also other provisions for dealing with specific diseases.
88 
157. Given the importance of Colombian agricultu ral production, together with the above-
mentioned regulatory framework, the country mainta ins an extensive system of phytosanitary and 
animal health requirements, which are applied to domestic and imported products to avoid risks and 
                         
88 Avian influenza, foot and mouth disease, brucellosis, bovine tuberculosis, wild rabies, equine 
encephalitis, Newcastle disease, salmonellosis, infectious  equine anaemia, classical swine fever and bovine 
spongiform encephalitis (BSE).  A list of relevant pr ovisions can be found at:  http://www.ica.gov.co/. Colombia WT/TPR/S/172 
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solve already-existing problems.  In the field of animal health, the ICA imposes requirements with 
respect to animal health export cer tificates, sanitary inspection at exit and entry points, registration of 
genetic material producing centres, registration of imports and exports of inputs, temporary 
quarantining of equine animals, and intrasubregi onal trade in animals and animal products.  With 
respect to the safety of processed food, the INVIMA  requires sanitary marketing registration valid for 
ten years.  Each batch of product that arrives at a Colombian port during the period of validity of the 
registration is physically examined by the health authority; laboratory analysis is compulsory for 
foodstuffs identified as posing a greater degree of risk to public health. 
158. The ICA, through Resolution No. 2950 of 2001, set up a risk analysis unit responsible for 
analysing the biological and chemical risks to an imal and plant species posed by the international and 
domestic trade in agricultural goods, tourism and mean s of transport.  Resolution No. 1277 of 2004 
defines the situations in which risk analysis is required.  According to the authorities, the Risk 
Analysis and International Affairs Group carries out about 30 studies a year.   
159. In the phytosanitary area, Andean Commun ity Resolution No. 240 of 1999 defines the 
importation and product inspection document.  CAN Resolution No. 239 of 1999 requires a 
phytosanitary export certificate, which must be issued  by the ICA in the case of Colombia at the port 
of departure.  Examples of these requirements incl ude a special phytosanitary licence for the export of 
potatoes;  registration as an exporter and importer of ornamental plants, wh ich covers exports of 
flowers and fruit-tree planting stock; and the regi stration and phytosanitary treatment of solid wood 
packing.89 
160. With respect to seed, under Resolution No. 00148 of 2005, importing or marketing seed for 
sowing requires certification and registration with the National Register of Cultivars.  Imports of seed 
for sale must comply with the quality standard s 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. 
161. The ICA is authorized to prohibit the production or importation of a cultivar for phytosanitary 
or biossafety reasons.  Seeds must comply with the information requirements relating to genetically-
modified organisms (GMOs).  Decision 00013 of  1998 created the National Technical Council to 
assist the ICA in dealing with GM Os for agricultural use.  Resolution No. 946 of 2006 establishes the 
procedure used by the ICA for handling living m odified organisms (LMOs) applications.  The 
authorities have pointed out that, as of mid-2006, no seed imports had been prohibited for biosafety 
reasons. 
162. According to the authorities, biosafety is assess ed case by case, on the basis of the OECD and 
FAO protocols.  In this connection, permission has been given for two kinds of crop seed, namely, 
cotton with Bollgard technology and cotton with Roundup technology, to be imported into Colombia for commercial purposes.  
163. Law No. 740 of 2002 regulates the transfer, handling and utilization of LMOs which could 
have adverse effects on the conser vation and sustainable use of biological diversity, taking into 
account the risks to human health.  Regulatory Decr ee No. 4525 of 2005 establishes the conditions for 
the transboundary movement, transit, handling an d use of LMOs and demarcates the responsibilities 
of the various authorities.  The Decree also creates national technical biosafety committees 
responsible, among other things, for assessing the risks posed by GMOs. 
                         
89 Resolutions Nos. 01079 of 2004 (ICA) and 0245 of 2003 (Ministry of Agriculture). WT/TPR/S/172 Trade Policy Review 
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164. There are procedures for marketing livestock products containing GMOs. Marketing is not 
authorized until the biosafety assessment has b een approved (Resolution No. 02935 of 2001).  
Importers must also comply with the animal health requirements for imports.   
165. Resolution No. 00074 of 2002 defines the certif ication, labelling and marking requirements 
for ecological agricultural products.90  This Resolution stipulates that imports described as an 
"ecological agricultural product" must come from countries with which Colombia has reciprocity agreements.  In mid-2006, Colombia had not conclu ded any agreements with other countries due to 
the lack of equivalence with their laws.  For th is reason, Resolution No. 00074 was in the process of 
being revised. 
166. Resolution No. 00329 of 2001 states that laboratories which analyse agricultural inputs and 
pesticide residues must be registered with the IC A.  Foreign laboratories can register on presentation 
of certificates issued by a recognized international body.  According to the authorities, as of mid-2006 
1,477 agricultural pesticides had been registered  in Colombia.  Colombia has made amendments 
(Resolution No. 00026 of 2005) to the requirements relating to the registration and control of 
chemical agricultural pesticides since in 2004
91 the CAN General Secretariat issued a ruling of non-
compliance with the relevant Andean regulations.92  The national registration of a pesticide requires a 
risk and environmental management assess ment and laboratory analysis certificates. 
167. According to the data supplied by the authorities, in 2006 there are 70 laboratories authorized 
to analyse agricultural inputs, 48 domestic and 22 fo reign.  Only one laboratory is authorized to 
analyse pesticide residues.  According to the authorities, between 1997 and 2005 there were 
1,390 analyses of pesticide residues and 13,355 analyses of agricultural inputs. 
168. Resolution No. 0150 of 2003, Chapter IV, establis hes the arrangements for the registration of 
imports of finished fertilizer products or raw ma terials 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 to be an importer, exporter or seller of fertilizers.  
169. All processed food sold for human consumption, including imports, must be registered with 
the INVIMA, which authorizes its marketing in Colomb ian territory by granting sanitary registration.  
Although registration is granted automatically, ther e is a subsequent documentary check, which may 
lead to suspension of the registration.  In th e case of unprocessed products, a sanitary import permit 
has to be requested from the ICA before application can be made to the MCIT for an import licence.  
The ICA sanitary import permit is transmitted from th e importer to the exporter in the country of 
origin of the product, from which a sanitary export  permit is required in response to the ICA import 
certificate requirements. 
170. There is also a requirement for sanitary regist ration with the INVIMA, prior to importation, 
for medicines, cosmetics, processed foods, insectic ides for domestic use and related products.  The 
registration process usually takes three to six m onths.  The INVIMA gives approval for certain 
products that do not require prior import registration. 
171. During the period 1997-2006, most of the SPS measures notified to the WTO were adopted in 
relation to products of animal origin (49 per cent), followed by products of plant origin (26 per cent) 
                         
90 "Ecological", "biological" and/ or "organic" products are defined as primary and processed 
agricultural food products that have been certified by an entity accredited by the National Standardization, 
Certification and Metrology System and approved at national level. 
91 Resolution No. 843 of 2004. 
92 CAN General Secretariat Decision No. 436 and Resolution No. 630. Colombia WT/TPR/S/172 
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and foodstuffs (21 per cent).  Colombia has not notified the WTO of any measure concerning 
pesticides.  In the case of sanitary measures relati ng to animals (foot and mouth disease, BSE, avian 
diseases) and measures relating to food safety (potassium bromate), it was decided to suspend imports directly. 
172. Of all the adopted measures that were notifie d, about 40 per cent were adopted as a matter of 
urgency and related mostly to outbreaks of disease in  animals.  Moreover, about 56 per cent of the 
measures adopted were based on international st andards, guidelines or recommendations.  The SPS 
measures that affected imported pr oducts covered imports from a wide  range of countries and in some 
cases were applied in a general fashion to imports from all countries.   
173. Within the context of the campaign against foot and mouth disease and other diseases, 
Colombia has proposed that, in the process of evaluation and recognition of pest-free and disease-free 
areas, the administrative aspects be considered toge ther with the technical and scientific aspects 
within specific time-limits.
93 
174. In connection with concerns expressed by ot her countries about the SPS measures adopted by 
Colombia in recent years, issues relating to Colomb ian restrictions concerning foot and mouth disease 
have been identified94 and resolved.  At the same time , in the WTO Committee on SPS measures 
Colombia has pointed out that its exports are en countering problems as a result of the SPS measures 
applied by other countries in areas relating to food safety and the length of time being taken by other 
countries to recognize Colombia's  pest- and disease-free zones.95  Within the context of its 
participation in the Committee on SPS measures, Colomb ia has also identified its technical assistance 
requirements.96 
175. The Andean regional SPS measures are based on CAN Decision No. 515 of 2002.  Colombia 
has participated with the other CAN countries in ef forts to:  harmonize phytosanitary regulations and 
SPS procedures in Andean intraregional and third-c ountry trade;  adopt procedures for declaring a 
country/region pest- or disease-free;  and create animal epidemiological and phytosanitary information and surveillance systems. 
176. At Andean regional level, a handbook on chem ical agricultural pesticides (Resolution 
No. 630) and procedures for issuing phytosanitary and animal health permits and certificates has also 
been adopted.  At the same time, a Basic Catalogue of Animal Pest s and Diseases has been compiled 
and is being used to decide whether to prohibit th e importation from third countries of animals, plants 
and any product that could spread pests and disease s.  The Andean Subregional Programme for the 
Eradication of Foot and Mouth Disease 2002-2009 and Decision No. 483 on rules for the registration, 
control, marketing and use of vete rinary products have also been a dopted.  Trade in cosmetic products 
within the CAN is regulated by Decision No. 516 of 2002.  At the beginning of 2006, the CAN had initiated work relating to the upda ting of the sanitary regulations governing the trade in bovine 
animals, categories of phytosanitary risk, and th e assessment of the risk of introducing BSE in 
deboned meat from the United States.
97 
                         
93 WTO document G/SPS/GEN/611 of 12 December 2005. 
94 WTO documents G/SPS/GEN/204/Rev.5 of 25 Febr uary 2005 and G/SPS/R/31 of 23 December 2003. 
95 WTO documents G/SPS/GEN/204/Rev.5 of 25 Febr uary 2005, G/SPS/R/38 of 27 February 2006, 
G/SPS/R/37/Rev.11 of 18 August 2005,  and G/SPS/R/26 of 27 May 2002. 
96 WTO document G/SPS/GEN/295/Add.10 of 1 March 2002. 
97 See http://www.comunidadandina.org/sanidad.htm. WT/TPR/S/172 Trade Policy Review 
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(3) MEASURES AFFECTING EXPORTS  
(i) Registration, documentation and export licences 
177. The existing regulation governing export procedures is Decree No. 2.685 of 1999 
(Articles 260 to 352), which has Resolution No. 4240 (Title VII) of 2000 as its regulatory framework.  
Decree DIAN No. 2788 of 2004 established a Single Tax Register (RUT) to replace the National 
Register of Exporters of Goods and Services and the Register of Customs Users.  Exporters are 
obliged to enrol in the RUT.98  Moreover, coffee exporters are required to register annually in 
accordance with Resolutions MI NCOMEX Nos. 0355 and 0518 of 2002 and External Circular No. 32 
of 2002. 
178. Exports with a value of more than US$1,0 00 must pass through a customs intermediation 
company (SIA).  "Regular customs users" and "h igh export users" may operate directly as exporter-
declarants without having to use an SIA.99 
179. The main export requirement is to lodge a sh ipment authorization application through the 
DIAN's computer system.  Table III.9 indicates the types of product requiring various authorizations, 
permits, certificates and approvals.  Once the docum ents and procedures have been completed, the 
computer system converts the shipment authorizati on declaration into a definitive export declaration. 
Table III.9 
Prior authorizations to export 
Product  Authorizing entity  Requirements  Justification Legal measure 
Live animals;  fresh fruit, 
flowers and vegetables;  tubers and aromatics (if the importing 
country so requires);  products 
of animal or plant origin, unprocessed;  pharmaceutical 
products for veterinary use ICA Animal health and 
phytosanitary certificates, 
sales licence Sanitary and 
phytosanitary protection Resolution No. 1238 of 1992; 
Resolution No. 583 of 2000; Resolution No. 3336 of 2004; 
Decision No. 0004 of 2004 
Fish and molluscs, live and dead INCODER Marketing permit Fishing and fish 
farming Decree No. 2256 of 1991;  
Decision No. 009 of 2003 
Substances subject to special 
controls (raw materials and 
medicines) National Narcotic 
Drugs Fund Registration, 
export certificate Control, 
monitoring and 
surveillance of 
controlled substances Resolution No. 01478 of 2006 
Emeralds and precious stones, 
gold, silver and platinum INGEOMINAS Authorization; 
approval;  payment of taxes 
and royalties 
certificate Control of 
precious and semi-precious 
stone exports Law No. 488 of 1988; 
Decree No.  2477 of 1984; Decision No. 023 of 2000 
Products covered by the 
Convention on International 
Trade in Endangered Species of Wild Fauna and Flora Environment Ministry CITES certificate Environment Resolution No. 573 of 1999;  
Decree No. 309 of 2000 
Decree No. 1791 of 1996; Resolution No. 1.367 of 2000 
Ozone-depleting substances - ODS Environment Ministry Approval Environment Resolution No. 2188 of 2005 
Sugar and panela for the USA; 
other products with tariff 
preferences MCIT Certificate of 
Eligibility 
Certificate of 
Origin Administration of 
preferential access 
and tariff quotas Trade agreements  
    Table III.9 (cont'd) 
 
  
                         
98 Resolution DIAN No. 8.346 of 2004 prescribes the registration form. 
99 Decree No. 2685 of 1999, Chapter I. Colombia WT/TPR/S/172 
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Product  Authorizing entity  Requirements  Justification Legal measure 
National cultural treasures 
(drawings, sculptures, paintings 
pre-Colombian objects) Ministry of Culture Exit authorization 
moveable 
property of 
cultural interest Cultural property Law No. 397 of 1997; 
Decree No.  833 of 2002;  
Resolution No. 0787 of 1988; 
Decree No. 2685 of 1999;  Decree No.  1746 of 2003;  
Resolution No. 395 of 2006 
Arms, ammunition, explosives, chemical components, 
chemical weapons INDUMIL Approval Control of arms, 
ammunition, 
chemical components and 
chemical weapons Decree No. 2535 of 1993;  
Regulatory Decree No. 1809 
of 1994;  Decree No. 334 of 2002;  Law No. 525 of 1999;  
Resolution No. 00383 of 2003;  
Resolution No. 302 of 2003 
Source:  WTO Secretariat, on the basis of information supplied by the authorities. 
180. According to the DIAN, the estimated average ti me for completing the procedures is one day.  
The authorities have also stated that in 2005 a to tal of 378,103 export declarations was processed.  
The average value per export declaration was US$56,333.   If the exporters are classified by type of 
customs user, regular customs users (UAP) lodged  93,890 declarations, "high export users" (ALTEX) 
5,096 documents and the rest of the decl arations were submitte d by other exporters. 
181. The DIAN, whether by means of risk anal ysis or on a random basis, may check the 
accompanying documents or carry out a physical ex amination of goods for export.  If the DIAN finds 
discrepancies with respect to the export declaration, the measures it adopts will vary according to the 
product and the discrepancy detected (Article 276, Decree No. 2685 of 1999).  The DIAN's Selection 
Committee meets every month and deci des what percentage of exports will be subject to inspection in 
accordance with selectivity criteria.   Decree No. 4149 of 2004 and Law No. 962 of 2005 established a 
simultaneous inspection mechanism, with non-intrus ive inspection equipment, for goods selected for 
physical examination.  The National Federation of  Coffee Growers carries out inspections of export 
shipments to collect the coffee contributi on tax and check for quality and weight. 
182. The MCIT qualifies and issues certificates of origin  for exports that continue to benefit from 
tariff preferences and issues eligibility certificates for sugar exports to the United States. 
(ii) Other charges and minimum prices 
183. There are contributions of a parafiscal nature a pplied to exports of certain products, such as 
coffee, emeralds, precious stones and some fuels. 
184. The coffee contribution tax100 is levied on exported coffee and is equivalent to 5 per cent of 
the price of the mild coffee exported (see Chapte r IV (2)(i)).  The emerald contribution (Decree 
No. 2407 of 2000) is paid by the exporter and amounts to 1 per cent, in  foreign currency, of the export 
price of the unset emeralds (see Chapter IV (3)). 
(iii) Restrictions on exports 
185. One of the functions of both the Higher Council for Foreign Trade and the Committee on 
Customs, Tariff and Foreign Trade Affairs is  to examine and recommend to the Colombian 
Government the adoption of measures that restrict international trade.101  These restrictions are usually 
adopted with reference to Article XI of the GATT.  Thus, Colombia has introduced various measures 
                         
100 Chapter VI, Article 19, Law No. 788 of 2002. 
101 Decree No. 2553 of 1999. WT/TPR/S/172 Trade Policy Review 
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placing temporary restrictions on exports.  Table III.10 lists the measures adopted between 
January 2000 and April 2006. 
Table III.10 
Temporary export restrictions, 2000-April 2006 
Product  Tariff 
subheading  Date of 
restriction  Duration of 
restriction  Restriction (tonnes)  Justification Decree 
Raw hides 
and skins in 
blue 41.01.10.00.00 
41.01.21.00.00 
41.01.29.00.00 41.01.30.00.00 
41.04.22.00.00 29.12.2000 4 months Prohibited, except for Plan 
Vallejo (PV) 5,000 Shortage of 
basic raw 
material Decree No. 2794 of 
29 December 2000 
Raw hides and skins in 
blue 41.01.10.00.00 
41.01.21.00.00 
41.01.29.00.00 41.01.30.00.00 
41.04.22.00.00 16.04.2001 4 months Prohibited, except for PV 5,000 Shortage of 
basic raw 
material  Decree No. 636 of 
April 16 of 2001 
Raw hides 41.01.10.00.00 
41.01.21.00.00 
41.01.29.00.00 
41.01.30.00.00 22.10.2001 6 months Prohibited, except for PV, 
Bancoldex and prior contracts Shortage of 
basic raw 
material  Decree No. 2261 of 
22 October 2001 
Scrap metal  72.04.21.00.00 
72.04.10.00.00 
72.04.49.00.00 72.04.29.00.00 
72.04.30.00.00 
74.04.00.00.00 76.02.00.00.00 
78.02.00.00.00 02.06.2004 6 months Half-yearly export quota of 
4,700 tonnes for 72.04.21.00.00, 
72.04.10.00.00, 72.04.49.00.00, 72.04.29.00.00, 72.04.30.00.00, 
72.04.41.00.00, 72.04.50.00.00 
Half-yearly export quota of 15,200 tonnes for 
74.04.00.00.00, 76.02.00.00.00, 
78.02.00.00.00 Shortage of 
basic raw 
material  Decree No. 1771 of 
2 June 2004 
Non-
ferrous 
scrap 74.04.00.00.00 
76.02.00.00.00 
78.02.00.00.00 02.08.2004 6 months Export quota reduced from 
15,200 tonnes to 12,445 tonnes Shortage of 
basic raw 
material  Decree No. 2419 of 
2 August 2004  
Source : WTO Secretariat, on the basis of information supplied by the authorities. 
186. Colombia has commitments to apply restricti ons on the exportation of certain products under 
the Convention on International Trade in Endangere d Species of Wild Fauna and Flora, the Basel 
Convention on the Control of Tran sboundary Movements of Hazardous Wastes and their Disposal and 
the Montreal Protocol on Substances that Deplete th e Ozone Layer.  Exports of goods that form part 
of Colombia's cultural, artistic, archaeological and historical heritage are also restricted.  
187. Coffee exports are prohibited if they do not comply with the quality standards established by 
the National Coffee Growers' Committee.102  Moreover, retention may be required, wholly or partially 
in kind103, if the National Coffee Growers' Committee j udges that the stockpile cannot be taken care 
of by purchases made by the National Federation of Coffee Growers or if Colombia's obligations under international coffee conventions so demand.   
                         
102 The authorities have pointed out that this measur e is consistent with the provision in Resolution 
No. 420 of the International Coffee Organization, of which Colombia is an exporting member. 
103 Chapter VI, Article 63, Law No. 788 of 2002. Colombia WT/TPR/S/172 
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(iv) Subsidies and other export-related tax concessions 
(a) Subsidies 
188. In December 2001, Colombia lodged a request104, pursuant to Article 27 of the Agreement on 
Subsidies and Countervailing Measures (SCM Agreemen t), for an extension of an transition period 
for the continued application of export subsidy pr ogrammes in respect of the free zone regime, the 
Special Import-Export Systems (SIEX) for Capital Goods and Spare Parts and the Transport Compensation Mechanism.  The request was made  under the provisions of paragraph 10.6 of the 
Ministerial Decision on implementation-relate d issues and concerns (WT/MIN(01/17) of 
14 November 2001.
105 
189. With respect to the free zone programmes and the SIEX for Capital Goods and Spare Parts, 
the Committee on Subsidies and Countervailing Measures decided106 that the transition period for the 
elimination of export subsidies would not be ex tended beyond 31 December 2006, including the final 
two-year period provided for in Article 27.4 of the SCM Agreement. 
190. With respect to the CERT programme, Presidential Decree No. 033 of 2001 and Decree 
No. 1989 of 2002 reduced the CERT rates to zero, thus eliminating the subsidy component being 
granted under that programme.107 
191. According to the authorities, within the c ontext of the WTO Agreement on Agriculture, 
Colombia has maintained its commitments progressi vely to reduce its budgetary outlays on export 
subsidies under SIEX and CERT (see also Chapter IV(2)). 
(b) Free zone regime 
192. Table III.11 shows the various types of incentive th at make up the original free zone system.  
The incentives for free zone users108 include exemptions from income tax (see also Section (4)(i) 
below).  The free zone regime does not include exemptions from taxes such as fuel taxes.  
Table III.11 
Incentives that have existed for free zone users 
Type of 
incentive Incentive 
Exemption 
from income 
tax Exemption  from payment of income tax (38.5 per cent in 2006)  and remittance tax (7 per cent) on:  income from sales 
on foreign markets (third countries, Plan Vallejo import-export contracts, to other free zone s, international tenders);  
interest payments and payments for technical services made  abroad;  income from author ized activities within the free 
zone;  remittance of profits from foreign enterprises. 
Article 5 of Law No. 1004 of 2005 establishes as income ta x:  (i) 15 per cent as from  1 January 2007 for free zone 
users;  (ii) the general tariff in force for commercial free zone users. 
Exemption 
from duty, 
VAT Exemption from payment of:  customs duties;  VAT or sale s tax.  For goods exported from Colombia to the free zone, 
the VAT exemption is received by the Colombian exporter. 
 Table III.11 (cont'd) 
 
                         
104 WTO document G/SCM/74/COL of 15 January 2002. 
105 WTO document WT/MIN(01)/17 of 20 November 2001. 
106 WTO documents G/SCM/93 of 17 December 20 02;  G/SCM/94 of 17 December 2002;  
G/SCM/94/Add.1 of 8 December 2003; and G/SCM/93/Add.1 of 9 December 2003. 
107 See http://www.dian.gov.co/DI AN/13Normatividad.nsf/0/5847c41a7e7c5c3905256ef500752cf8? 
OpenDocument. 
108 The free zone operator users include three kinds of user:  industrial goods, industrial services, and 
commercial. WT/TPR/S/172 Trade Policy Review 
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Type of 
incentive Incentive 
Credit 
facilities Credit facilities for industrial users in fr ee zones:  special Bancoldex lines fo r financing exporting enterprises;  
Bancoldex handles the line of credit fr om the Industrial Promotion Institute  (IFI-World Bank) for fixed assets 
(relocation in free zones).  
Movement 
outside free 
zones without payment of 
duty or VAT Authorization of Customs transit operations from international ports and airports to free zones. 
Exchange Freedom to possess and deal in c onvertible currencies within  the free zone;  possibility of holding foreign currency i n 
deposit or current accounts in Colombian or foreign banks.  There is no requirement to return foreign currency to the 
foreign exchange market. 
CERT Decree No. 727 of 1997 defines as exportation the depart ure from Colombian territory of goods that have been 
processed in a free zone and grants industrial users the right to receive CE RT on the same conditions as for other 
exports.  The CERT is assessed on the value added in the fr ee zone, not including the value of the raw materials, by 
applying the level fixed by the Governme nt to the corresponding tariff subheading. 
Source : Law No. 1004 of 2005;  Tax Statute;  MCIT109;  Decree No. 727 of 1997;  Decree No. 2233 of 1996. 
193. Decree No. 4271 of 2005 transferred the administration of the free zones from the MCIT110 to 
the DIAN as from 1 December 2005.111  There is no limit on exports from free zones into Colombian 
customs territory.  The entry of goods from free z ones into Colombian customs territory is treated as 
importation (Article 399 of Decree No. 2685 of 1999).   Sales made from a free zone to a foreign 
country are not counted as Colombian exports.  The introduction of goods into a free zone from abroad is not treated as importation and is not incl uded in official estimates of Colombian imports.  
According to the authorities, exportation between free zones is not one of the permitted operations 
between free zone users contemplated by Article 408 of Decree No. 2685 of 1999. 
194. The main industrial activities in the free zones are manufacturing, processing and assembly 
and production of textiles, clothing, footwear a nd electronic goods.  In 2003, some 437 enterprises 
were operating in 11 free zones
112 directly generating 23 ,513 jobs and total sales of US$787.4 million, 
of which 49.5 per cent were exports to the rest of  the world and 50.5 per cent exports to Colombia's 
customs territory. 
195. Article 69 of Law No. 863 of 2003 repeals, from 31 December 2006, the following three 
articles granting income tax exemptions  for industrial users in free zones:113  (i) Article 213 of the Tax 
Code ("Legal persons who are users of Industrial Free Zones shall be exempt from income tax and 
supplementary taxes on income they earn from in dustrial activities carried out in the Zone");  
(ii) Article 213 and Article 322(m) of  the Tax Code for cases in which remittance tax is not applied to 
income earned from industrial activities in industrial  free zones;  (iii) Article 15 of Law No. 109 of 
1985 relating to free zone users in the industrial-goods category. 
                         
109 See http://www.mincomercio.gov.co/VbeCont ent/NewsDetail.asp?ID=686&IDCompany=1. 
110 Decree No. 2131 of 1991, Decree No. 1177 of 1996 (Transitional Free Zone), Decrees Nos. 2233 of 
1996, and 727 of 1997, Decree No. 2685 of 1999 (Customs Code), and Decree No. 918 of 2001. 
111 Other provisions relating to free zones are contained, inter alia , in Article 7 of Law No. 48 of 1983 
(Framework Law), Law No. 109 of 1985, Decree No. 1471 of 1986, Article 6 of Law No. of 1991, Decree 
No. 2233 of 1996, Resolution Incomex No. 273 of 1997 (Plan Vallejo - free zones), Decree No. 727 of 1997 
(amending Decree No. 2233 of 1996, CERT), and Decree No. 918 of 2001. 
112 In 2003, the free zone enterprises were made up of :  89 industrial goods, 31 industrial services, 
82 industrial goods/services, and 235 commercial.  Report to Congress 2004, Trade, Industry and Tourism 
Sector, MCIT. 
113 WTO document G/SCM/N/114/COL of 1 July 2004. Colombia WT/TPR/S/172 
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196. The most recent legal amendments to Colombia 's free zone programme are those set out in 
Law No. 1004 of 2005, which established new criteri a for the free zones as a means of creating jobs, 
attracting new investment, establishing a focal point  for regional development, developing productive 
industrial processes and simplifying trade procedures.   The previous objective (Decree No. 2233 of 
1996) was to promote the industrialization process a nd the provision of services, mainly for foreign 
markets. 
197. Law No. 1004 of 2005 converted free zone user s into payers of income tax, as from 
1 January 2007, at a single rate of 15 per cen t, except for commercial users who will pay at the 
general rate in force (38.5 per cent in 2006).114 
(c) Special import-export systems 
198. The Special Import-Export System (SIEX) or Plan  Vallejo is a regime that provides for the 
temporary importation of inputs, raw materials, in termediate products or cap ital goods and spare parts 
used in the production of goods for export or inte nded for the provision of services directly linked 
with the production or exportation of such goods.  Changes to this regime115 in recent years include 
Resolution  MINCOMEX No. 0011 of 2003 and Decree No. 1811 of 2004 on the limits of the SIEX 
programme benefits for capital goods and spare pa rts.  Pursuant to Decree No. 4271 of 2005, the 
DIAN took over the administration of the SIEX and Decree No. 4553 of 2005 introduced further changes and abolished the provision of guarantees. 
199. The incentives granted under the SIEX take the form of total exemption from the customs 
duties incurred as a result of importing the goods a nd the deferred payment, over a period of five 
years, of VAT on imports of capital goods and spare parts intended for the installation, expansion or 
relocation of production units for producing e xport goods.  Natural or legal persons who are 
producers, exporters or traders enrolled in the Si ngle Tax Register are eligible.  No income tax 
reductions are granted under the SIEX programme.  Table III.12 provides information about the SIEX 
programme incentives.  
Table III.12 
Statistical data on the impact of the SIEX programme, 1998-2005 
($US Million) 
Year Imports of capital goods 
under the programme Exports by companies 
benefiting from the 
programme notified Value of the incentive 
(revenue foregone) Total exports 
1998 458.8 4,139.1 49.2 10,865 
1999 545.3 5,494.1 60.3 11,617 
2000 512.5 6,340.4 53.0 13,114 
2001 379.8 5,630.2 60.8c 13.32 
2002 228.3 5,462.4 34.9c 12,902 
2003 387.7 6,350.0 27.9d 13,092 
2004 243.3 7,926.5 27.8b 16,729 
2005 264.6a 2,849.1b 28.4c 21,187.1 
a SIEX - Registered imports, Ministry of Trade 
b DANE-DIAN.  Prepared by OEE, Ministry of Trade. 
c Information Systems Office, Ministry  of Trade, Industry and Tourism. 
d DIAN. 
Source: Data compiled by the authorities and notified to the WTO in document G/SCM/N/146/ COL of 5 September 2006. 
                         
114 Decree No. 624 of 1989. 
115 The original provisions of the Plan Vallejo for import-export procedures can be found in Decree 
No. 444 of 1967. WT/TPR/S/172 Trade Policy Review 
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200. In recent years, more than half of Colombia's  total exports have been covered by the SIEX 
programme.  According to the data provided by the authorities, in 2004 most of the benefits of the 
programme were focused on the importation of ra w materials (70.4 per cent), followed by capital 
goods (18.4 per cent) and in third place, other, including spare parts (6.1 per cent).116  T h e  
corresponding percentages for 2005 are:  raw mate rials (84.2 per cent), capital goods (12.3 per cent) 
and other, including spare parts (3.5 per cent). 
201. It is a requirement of the SIEX programme th at the value of the exports of beneficiary 
enterprises must represent at least 70 per cent of the production increases.  The importation of capital 
goods intended for the provision of services linke d with the production or export of goods must 
generate exports equivalent to 1.5 times the f.o.b. value (in US dollars) of the imports authorized.  In 
the case of raw materials, inputs, semi-manufactur ed products and machine parts, the value of the 
exports must be at least 1.5 times that of the imports. 
202. As noted in subsection (iv) above, Colombia promised that the transition period for the 
elimination of SIEX export subsidies for capital goods  and spare parts would not be extended beyond 
31 December 2006, including the final two-year pe riod.  Likewise, the deferred payment of VAT 
would not be extended beyond 31 December 2006.   
(d) International trading regime 
203. The International Trading (C.I.) re gime, created by Law No. 67 of 1979117, operates as a 
means of supporting exports with a tax concession th at allows Colombian products to be bought on 
the domestic market for export free of VAT and he nce without VAT being withheld at source.  
Enterprises eligible for this regime issue the suppl ier with a certificate that is used as an export 
document, thereby making it possible for the VAT not to be invoiced or withheld.  Responsibility for 
exportation rests with each international tradin g enterprise.  Any company governed by the 
Commercial Code may request the DIAN for enrolmen t in the Register of International Trading 
Companies. 
204. Products exported through an international trading enterprise must be of domestic origin.  If a 
product has a foreign component, that component must comply with the rules of origin in force, so 
that the end product is Colombian.  The MCIT or igin office determines the origin of the goods. 
205. In 2003, exports under the C.I. regime amounted  to US$2,900 million, equivalent to 21 per 
cent of Colombia's total exports.118 
(e) Special Economic Export Zones 
206. Law No. 677 of 2001 established the regulations for the Special Economic Export Zones 
(ZEEE) and set up the special zones of Buenaven tura, Cúcuta, Ipiales and Valledupar.  Decree 
No. 045 of 2003 extended the benefits of the ZEEE to the municipality of  Tumaco.  Decree No. 1227 
of 2002 partially enabled Law No. 677 with respect  to regulations on exceptional treatment for 
territorial regimes. 
207. Colombia listed Law No. 677 of 2001 on  ZEEE in its export subsidy notification.119  Thus, it 
notified that the ZEEE are a system similar to free zon es, to the extent that the free zone customs and 
tax regulations also apply to the ZEEE. 
                         
116 Ministry of Trade, Industry and Tourism (2004), page 119.  
117 Amended by Decree No. 1740 of 1994 and its amendments and Decree No. 093 of 2003. 
118 Ministry of Trade, Industry and Tourism (2004), page 116. Colombia WT/TPR/S/172 
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208. The ZEEE continue to attract investment for e xpanding industrial exports.  For an enterprise 
to be eligible for the ZEEE programme, 80 per cent of sales must be destined for foreign markets.  In 
the case of industrial exports that use agricultura l raw materials, all the goods obtained must be 
exported. 
209. In 2005, the concessions available for ZEEE projects120 were equivalent to those granted to 
industrial users of free zones, that is to say:  (i) exemption from income tax and remittance tax in 
relation to payments, credits to accounts and transf ers abroad for interest and technical services;  
(ii) with respect to customs, exemption from payment of customs duties121;  and (iii) eligible 
infrastructure projects are exempt from income tax and supplementary taxes.  Law No. 1004 of 2005 
repealed the provision of Law No. 677 of 2001 concerning the exemption from income tax of the 
proportionate share of revenue obtai ned from foreign market sales. 
210. Moreover, Article 15 of Law No. 677 of 2001 established special conditions in ZEEE which 
provide, among other things, for a 50 per cent reduction in the contributions made by the enterprise to the National Apprenticeship Service (SENA), the Co lombian Institute for Family Welfare (ICBF) and 
compensation funds.
122 
211. The authorities have stated that the ZEEE re gime has never been used in practice. 
(f) Tax Reimbursement Certificate (CERT)123 
212. The CERT was used as a measure to support expor ts if the exporters surrendered the foreign 
currency they earned from their exports.  The progr amme included the reimbursement of all or a 
proportion of the taxes, charges and contributions paid by the exporter124, together with a subsidy 
component received if the refund exceeded the amou nt of indirect taxes paid by the exporter.125  The 
CERT was notified126 to the WTO as an export subsidy programme (see subsection (iv) above). 
213. In 1998, certificates worth US$67.4 million were gr anted, in 1999 the level granted rose to 
US$74.6 million and in 2000 stood at US$54.4 million.  In the same years, the incentive amounted to US$14.4 million, US$12.3 million and US$10.6 million, respectively.
127  Law No. 779 of 2002 
approved Col$300,000 million (about US$1,200 milli on) for the payment of CERT entitlements in 
2003 for export operations carried out in 2002 and prev ious years, of which Col$170,000 million were 
paid out. 
214. The CERT was chiefly a means of promoting non-traditional exports.  However, the use of 
the programme for a limited group of goods incr eased from 24 per cent used on ten products between 
                                                                             
119 WTO document G/SCM/N/48/COL  - G/SCM/N/60/COL - G/SCM/N/71/COL of 7 January 2002. 
120 Article 16 of Law No. 677 of 2001. 
121 Subject to the commitments assu med in the context of the Cartag ena Agreement, especially those 
directed towards the implementation of the Andean Common Agricultural Policy (PACA). 
122 See http://www.secretariasen ado.gov.co/leyes/L0677001.HTM. 
123 Article 2 of Law No. 48 of 1983, Decree No. 1403 of 1996, Ministry of Trade Resolution No. 1092 
of 1997, Decrees Nos. 1989 of 2002 and 2990 of 2005. 
124 The CERT may be negotiated and/or used to pay income tax and supplementary taxes;  customs 
duties;  sales tax;  other taxes,  charges and contributions accepted by the bodies imposing them.  (see 
http://www.mincomercio.gov.co/VBeContent/N ewsDetail.asp?ID=421&IDCompany=7). 
125 The amount of the refund was calculated as a percentage of the f.o.b. value (Decree No. 2394 of 1997). 
126 WTO documents G/SCM/N/3/COL - L/7611/Add.11 of 3 August 1995, and G/SCM/N/48/COL - 
G/SCM/N/60/COL - G/SCM/N/71/COL of 7 January 2002. 
127 Information supplied by the Government in the notification to the WTO G/SCM/N/48/COL - 
G/SCM/N/60/COL - G/SCM/N/71/COL of 7 January 2002. WT/TPR/S/172 Trade Policy Review 
Page 70 
 
 
1992 and 1996 to 42 per cent between 1997 and 2001.  In the period 1997-2001, 26 per cent of the 
programme was used for only two products (bananas and pigments for makes paints).  Thus, in 
practice, the CERT ceased to function as a general means of promoting exports.128 
215. As already indicated, Presidential Decree No. 033 of 2001 and Decree No. 1989 of 2002 
reduced the CERT rates to zero, thereby eliminati ng the subsidy component.  The last year for which 
the incentive in the CERT tax refund was recognized was 2002. 
216. As there was a backlog in the recognition of CERTs previously issued, Decree No. 2990 of 
2005 modified the recognition of entitlement to CERTs by breaking them down into four certificates of equal value which could be used during tax years 2005, 2006, 2007 and 2008, with a view to 
harmonizing reimbursement commitments. 
(g) Other programmes 
217. Article 33 of Law No. 788 of 2002 introduced ta x concessions for any enterprise classified as 
a "high export user" (ALTEX).  Chapter III, Title I of Decree No. 2685 of 1999 stipulates that, to be 
treated as an ALTEX, the enterprise must be exporting 30 per cent of sales (US$2 million or more) or must previously have exported US$21 million.
129  The concessions granted consist in exemption from 
the payment of VAT on imports of industrial machin ery not produced in Colombia and intended for 
processing raw materials. 
218. According to the authorities, in 2005, "high export customs users" lodged 5,096 export 
declarations with an f.o.b. value of US$349.6 million.   
219. In 1997 and in 2002, Colombia notified130 the WTO's Committee on SMC of the Transport 
Compensation Mechanism (MCT)131 as an incentive for exporting to countries with which there are 
no direct transport services.  Under the MCT a compensation incentive equal to 26 per cent of the total cost of freight to the country of destination was granted during the first three years and an incentive equal to 13 per cent of the cost in the fourth and fi fth years.  The mechanism was 
administered by Proexport.
132  According to the authorities, th e MCT programme remained in effect 
for shipments that could be made by 31 December 2002.133 
220. According to official data on the use of the MCT, the number of export destination countries 
without direct transport service was 50 in 2001 and 49 in 2002;  f.o.b. exports under the programme 
                         
128 National Economic and Social Policy Council (2002), page 3. 
129 ALTEX are legal persons recognized by and regist ered with the DIAN, subj ect to compliance with 
the established conditions and requirements.  ALTEX were introduced into the customs legislation with a view 
to stimulating companies with a high proportion of exports through the facilitation of foreign trade operations. 
130 WTO documents G/SCM/N/3/COL/Suppl.2 - G/SCM/N/16/COL/Suppl.1 - G/SCM/N/25/COL/Suppl.1 
of 25 July 1997;  G/SCM/N/48/COL - G/SCM/N/60/COL - G/SCM/N/71/COL of 7 January 2002. 
131 Proexport Resolutions Nos. 003 and 004 of 1993, Proexport External Circular No. 002 of 1993, and 
Proexport Circular P-TRN No. 9075 of 1994. 
132 See http://www.proexport.gov.co/vbecontent/library/documents/DocNewsNo406DocumentNo 960.XLS. 
133 The authorities note that exporters were notified of the end of the MCT by means of a circular 
issued in August 2002 and a note on the Proexport web portal. Colombia WT/TPR/S/172 
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amounted to US$15 million in 2001 and US$30.7 million in 2002134;  the incentive was worth 
US$433,000 in 2001 and US$813,000135 in 2002.136 
221. Colombia does not have a drawback system. 
(v) Financing, insurance and guarantees 
222. The principal financing institution for non-ag ricultural exports continues to be the Banco de 
Comercio Exterior de Colombia  – Bancoldex (Foreign Trade Bank of Colombia), a semi-public bank, 
linked to the MCIT, in which the Gove rnment is the majority shareholder.137  Bancoldex functions as 
a second-tier State bank which does not disburse di rectly to businesses but lends via rediscount 
operations through pre-authorized intermed iaries (see also (4)(v)(a) and IV(7)(ii)). 
223. Bancoldex provides services for all the enterp rises in the export chain.  Its programmes 
include:  (i) supplier post-shipment credit fac ility used to purchase from Colombian exporters 
securities generated in forward trading operations , and guaranteed by a financial intermediary 
domiciled inside or outside the country of the fore ign importer;  (ii) buyer credit facility used to 
finance the foreign buyer of Colombian goods and services, through financial intermediaries 
domiciled inside or outside the country of the impor ter;  (iii) international banking operations in 
which Bancoldex offers, as a supplement to the fina ncing service, the confirmation of export letters of 
credit and management and nego tiation of documentary collec tion.  Table III.13 shows the 
disbursements made under these programmes. 
224. For SMEs exporting goods and services to the United States, Bancoldex offers a special 
ATPDEA facility intended to finance investment in  machinery and equipment only.  The conditions 
of this credit facility are based on a rate struct ure that encourages, on the part of the financial 
intermediaries, the granting of medi um- and long-term loans for financ ing investment in, for the most 
part, fixed assets.  According to the authorities, these programmes keep the cost of financing within 
market rate levels. 
Table III.13 
Bancoldex disbursements, 1998-2005:   Foreign intermediaries 
(US$ million) 
 1998 1999 2000 2001 2002 2003 2004 2005 
Post-shipment 54.4 48.8 34.9 53.6 29.1 26.6 17.4 13.0 
Buyer 0 0 0 2.6 62.1 62.10 30.9 66.4 
Correspondent bank 0 0 0 0 0 15.8 73.0 27.9 
Total 54.4 48.8 34.9 56.2 91.2 104.5 121.4 107.3 
Source : Information supplied by the authorities. 
225. Under the ATPDEA special facility programme , at the end of 2002 Bancoldex had made 
available to exporting or potentially exporting SMEs Col$200,000 million (about US$71 million) to 
meet their needs for working capital (Col$80,000  million) and machinery and equipment upgrading 
                         
134 Most exports went to Australia; the mechanism was applied to Turkey because  of suspension of the 
direct route and there was an increase in exports to Central American countries without direct service. 
135 In calendar year 2002, the mech anism was worth US$703,345.80; since the period for exporters to 
submit their accounts was 90 calendar days from the date of shipment, between January and March 2003 
US$105,955.40 was paid out under the MCT on export operations carried out in 2002. 
136 See http://www.proexport.gov.co/vbecontent/library/documents/DocNewsNo406DocumentNo 960.XLS. 
137 The entities that exercise control and surveillance over Bancoldex include the Bank of the Republic, 
the General Accounting Office, the Comptroller Gene ral's Office, the DIAN, th e Financial Supervisory 
Authority and the Companies Supervisory Authority. WT/TPR/S/172 Trade Policy Review 
Page 72 
 
 
(Col$120,000 million).138  In 2005, total Bancoldex export financing amounted to US$107.3 million 
(Table III.13). 
226. The authorities have pointed out that Colombia does not operate official export insurance or 
guarantee programmes.  The private sector provides these services on market terms.  However, 
Bancoldex is one of the two main shareholders in Segurexpo, an insurance company that offers export 
credit insurance to cover commercial,  political and extraordinary risks. 
(vi) Export promotion and marketing assistance 
227. Under Decree No. 2553 of 1999, the Ministry of Trade, Industry and Tourism has 
responsibility for formulating export promotion pol icy, taking into account the recommendations of 
the Higher Council for Foreign Trade, the Proexport Advisory Board and the Board of Directors of 
the Foreign Trade Bank.  Proexport is the organization entrusted with  the promotion of non-traditional 
exports, tourism and foreign investment.  Under Decree No. 210 of 2003, Proexport has independent 
assets administered by Fiducoldex an d composed of State funds and income received in payment for 
services rendered. 
228. Through a national and interna tional network of offices, Proexport provides businesses with 
support and advice to facilitate the design and execu tion of export, investment  and tourism strategies, 
including the identification of market opportunities and the design of market penetration strategies 
and action plans.  In addition, Proexport offers  a range of export offer preparation and updating 
services, including information and advisory servi ces.  Proexport also offers business facilitation 
services such as commercial advice and support for th e parties in promoting exports and attracting 
investment.  It offers the same kind of servi ces to foreign enterprises interested in purchasing 
Colombian goods and services or investing in Colomb ia and promotes partnerships with private and 
public national and international entities. 
229. In the period 2003-2005, Proexport allocated Co l$118,948 million (about US$45.6 million) to 
its various programmes. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Legal framework for business  
230. In recent years, Colombia has carried out extens ive reforms to facilitate company formation.  
Data from the World Bank and the International Fi nance Corporation show that the number of 
formalities necessary to set up a business fell from 19 in 2003 to 12 in 2005, while the time to complete them was reduced from 60 to 43 days.
139  In Latin America and the Caribbean, the average 
in 2005 was 11 formalities and 63 days.  The deri ved cost of setting up a business in Colombia 
amounts to one quarter of per capita  income (equivalent to some US$500), compared with a little over 
half of per capita income in Latin America and the Caribbean.140 
231. The main legal provisions relating to compan y formation are contained in the Commercial 
Code.141  Investors (domestic and foreign) may c hoose between several legal forms of business 
organization, including joint-stock companies and limited liability companies.  A joint-stock company 
                         
138 The allocation of machinery and equipment resour ces for programmes aimed at large enterprises 
was supplemented in 2003 with Col$50 billion.  Ministry  of Trade, Industry and Tourism (2004), page 141. 
139 World Bank and International Finance Corporation (2005). 
140 World Bank and International Finance Corporation (2005).  
141 Decree-Law No. 410 of 1971. Colombia WT/TPR/S/172 
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must have at least five shareholders and three members of the board of directors.142  A limited liability 
company can have a maximum of 25 shareholders.143  There are no minimum capital requirements for 
setting up a company.  For joint-stock companies, at least half the authorized capital must be 
subscribed when the company is formed and at least  one third of the subscribed capital must be paid 
up.  For limited liability companies, all the capita l must be paid up when the company is formed. 
232. To set up a company in Colombia it is necessary to have the incorporation papers registered 
by a notary public in Colombia.  The signature of the papers generates the payment of notarial fees 
which range from 0.27 to 0.3 per cent of the stated  capital.  Moreover, the company must be enrolled 
in the Commercial Register.144  This process is administered by the Chamber of Commerce of the 
place in which the registered offices are located.145  The chambers have 15 days to complete the 
process.146  Company registration is subject to paymen t of the fees prescribed by Decree No. 393 of 
2002 and the registration tax fixed by the departmental assemblies;  this tax ranges from 0.3 to 1 per 
cent of the company capital.  Companies must renew their registration annually.  There is a Business 
Service Centre in Bogotá that provides inform ation concerning the procedures for setting up a 
company and supplies the corresponding forms.  It is planned to open Business Service Centres in 
Cali and Medellín. 
233. Companies domiciled abroad can establish a presence in Colombia by setting up a company 
or opening a branch.  However, there are sectors in  which branches of foreign enterprises are not 
permitted, including financial services and telecommuni cations (see Chapter IV(7)(i) and (ii)).  Like 
companies, the branches of foreign enterprises must have their incorporation papers registered by a 
notary public in Colombia and must be enrolled in the Commercial Register. 
234. The rate of income tax was 38.5 per cent in 2005 and 2006.147  Colombia has a tax on 
occasional income.  This tax is levied at the rate of 20 per cent of the proceeds of the sale of fixed 
assets and company liquidation.  Transfers abroad of profits earned in Colombia are subject to 
remittance tax;  this is usually levied at a rate of 7 per cent, but may vary depending on the origin of 
the funds taxed.  Branches of foreign enterprises established in Colombia pay remittance tax on all 
their profits.  Taxpayers with net assets of more than Col$3,183 million must pay a wealth tax of 
0.3 per cent.  The municipalities tax the gross income derived from industrial, commercial or service activities in their area, excluding exports.  The rates vary from one municipality to another. 
(ii) Competition policy 
(a) General framework 
235. A report of the United Nations Conference on Trade and Development indicates that 
Colombia has a relatively high level of concentration of industrial activity.
148 
236. The main provisions on restrictive trade practic es are contained in the Constitution, in Law 
No. 155 of 1959, and in Decrees Nos. 1302 of 1964  and 2153 of 1992.  The Ministry of Industry, 
Trade and Tourism is responsible for formulating competition policy.149  The Supervisory Authority 
                         
142 Articles 374 and 434 of the Commercial Code. 
143 Article 354 of the Commercial Code. 
144 Article 31 and 34 of the Commercial Code. 
145 Article 27 of the Commercial Code. 
146 Paragraph 2.2.2.2, Title VIII, Si ngle Circular of the Supervisory Authority for Industry and Trade. 
147 Decree No. 624 of 1989.  See also Coinvertir (2006). 
148 UNCTAD (2006). 
149 Decree No. 210 of 2003. WT/TPR/S/172 Trade Policy Review 
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for Industry and Trade is the body responsible for "overseeing compliance with the provisions on the 
promotion of competition and on restrictive practices ... without prejudice to the responsibilities assigned to other authorities by the regulations in force".
150  The authorities responsible for 
monitoring anti-competitive practices in specific ar eas are:  the Special Administrative Division for 
Civil Aviation (air transport), the National Televisi on Commission (television), the Residential Public 
Utilities Authority (water supply, sewers, refuse  collection, electricity, switched basic public 
telephone services and gas distribution) a nd the Financial Supervisory Authority.151  Several studies 
have pointed out that the sharing out among several entities of the functions relating to the application 
of the rules on competition could give rise to asymmetric treatment of similar.152  It could also create 
confusion among economic operators  and among competition authorities if, for example, a form of 
anti-competitive practice extends acros s different sectors.  In connection with the present review, the 
authorities have noted that efforts are being made to redefine the responsibilities of the agencies with 
responsibilities in the field of competition. 
237. The Constitution recognizes the "right of all" to free competition.  It requires the State to 
prevent "economic freedom from being impeded or  restricted" and to prevent "any abuse by 
individuals or companies of their dominant position in the domestic market".153  The anti-competitive 
behaviour prohibited by national legislation includes the acts and agreements specified in 
Articles 46-48 of Decree No. 2153 of 1992.  Article 50 of this same decree stipulates that there are 
also disciplines relating to the abuse of dominant position. 
238. There are some exceptions to the application of the rules on competition.  Article 1 of Law 
No. 155 of 1959 empowers the Government to authori ze agreements that seek to "protect the stability 
of a  basic sector producing goods or services of interest for the general economy", even if such 
agreements restrict free competiti on.  The basic sectors are "all those economic activities which are or 
are on the point of becoming of fundamental importance for the rational structuring of the country's economy and the provision of goods or services indisp ensable for the general well-being, including 
the clothing, health and housing of the Colombian people;  the production and distribution of fuel;  
and the provision of banking, education, transpor t, electricity, water, telecommunications and 
insurance services".
154  The Colombian authorities have indicated that the Supervisory Authority for 
Industry and Trade has authorized one agreement (in the textiles sector) within the framework of this 
provision.  The following are also excluded from the application of the rules on competition:  
agreements that seek to promote cooperation in research involving and development of new 
technology;  agreements on non-mandatory rules, st andards and measures, provided that they do not 
restrict the entry of competitors into the market;  and those that relate to the use of public facilities.155 
239. Integration operations involving companies whose combined annual operating income is 
equal to 100,000 legal minimum monthly wages or mo re and whose combined total assets are equal to 
100,000 legal minimum monthly wages or more must be  notified to the SIC to enable it to determine 
whether "the operation creates an  undue restraint on competition".156  Other integration operations are 
not subject to the notification requirement.  Compan ies that participate in operations subject to the 
notification requirement must provide the Supervisor y Authority with the information specified in the 
Single Circular.157  The Supervisory Authority has 30 days from receiving the information to rule on 
                         
150 Article 2, Decree No. 2153 of 1992. 
151 Law No. 142 of 1994, Law No. 182 of 1995 and Decree No. 663 of 1993. 
152 OECD and IDB (2004b). 
153 Article 333 of the Political Constitution of the Republic of Colombia of 1991. 
154 Article 1, Decree No. 1302 of 1964. 
155 Article 49, Decree No. 2153 of 1992. 
156 Title VII, Chapter 2, Single Circular of th e Supervisory Authority for Industry and Trade. 
157 Idem . Colombia WT/TPR/S/172 
 Page 75 
 
 
the operation.  If it fails to rule within this time -frame, the operation will be deemed to have been 
approved.  It is for the companies to determine whet her they should notify the Supervisory Authority.  
Between 2000 and 2 005, the Supervisory Authority for Industry and Trade received about 590 
notifications of mergers and acquisitions.  The Supe rvisory Authority raised objections in four cases 
and set conditions in 24 others. 
240. The Supervisory Authority for Industry and Trad e may initiate investigations into alleged 
breaches of the rules on competition, either ex officio or at the request of a third party.  During the 
course of an investigation, the Authority may order th e investigation to be closed "if, in its opinion, 
the alleged offender offers sufficient guarantees that he will cease or modify the behaviour for which 
he is being investigated".158  The maximum penalty that the Authority may  impose amounts to 2,000 
minimum monthly wages for companies and 300 minimum monthly wages for natural persons.159  
The penalties adopted by the Authority as a result of an investigation do not require judicial 
authorization.  Between 2002 and 2005, the Author ity received some 250 complaints of practices 
affecting free competition and made 37 ex officio inqu iries.  During the same period, it opened about 
61 investigations, applied penalties in 19 cases and accepted guarantees in 41 others.  The Colombian 
authorities have indicated that no information is  available on the economic sectors concerned. 
(b) Andean provisions 
241. The Andean provisions concerning competition apply to anti-competitive practices only if 
they originate in one or more member countries a nd produce real effects in  one or more member 
countries, except when the origin and the effect are both confined to a single country;  or if they 
originate in a non-member country and produce real effects in two or more member countries.  In 
other situations, national legislation applies. 
242. The entry into force of Decision No. 608 of the Commission of the Andean Community in 
April 2005 resulted in important reforms to the A ndean competition regime.  Under Decision No. 608, 
it is not necessary to show a causal link between an  anti-competitive practice and the damage to the 
industry for that practice to be sanctioned, as it was under the previous legislation.160  The requirement 
to prove a causal link between the anti-competitive practice and the damage was one of the main 
weaknesses of the former regime.161  Like the previous provisions on competition, there is nothing in 
Decision No. 608 concerning mergers and acquisitions. 
243. Another fundamental change that resulted from the entry into force of Decision No. 608 is 
that the Andean Community General Secretariat is empowered to impose fines of up to 10 per cent of 
an offender's total gross income in the year preceding that in which the decision was adopted.162  
Previously, the General Secretariat could authori ze as a corrective measure a reduction in the tariff 
applied by the affected country.  Decision No. 608 provides for the creation of an Andean Committee 
for the Protection of Free Competition composed  of representatives of the national competition 
authorities of all the member countries.  Th e Committee would have an advisory role. 
                         
158 Article 52, Decree No. 2153 of 1992.  Concerning the discretionary powers of the Supervisory 
Authority for Industry and Trade to terminate an investigation, see Archila Peñalosa (2000) and Miranda 
Londoño (2004). 
159 Article 4, Decree No. 2153 of 1992. 
160 Article 7, Decision No. 608. 
161 García Gallardo and Domínguez Pérez (2005). 
162 Article 34, Decision No. 608. WT/TPR/S/172 Trade Policy Review 
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244. There have been no investigations within th e framework of Decision No. 608 (April 2006).  
Four of the five proceedings initia ted under the previous competiti on regime were directed against 
Colombian enterprises (Table III.14). 
245. According to the authorities, Colombia has not  signed any cooperation agreements with other 
countries relating to competition. 
Table III.14 
Andean competition proceedings involvi ng Colombian enterprises, January 2006 
Applicant Party accused Practice Outcome Referencea 
National Confederation of 
Palm Growers and Palm Oil Enterprises of Peru 
(CONAPAL);  Industrias del 
Espino S.A.;  Industrial Alpamayo S.A.;  ALICORP 
S.A.A.;  and Ucisa S.A. 
(Peru) Colombian palm 
growers Fixing of the prices of crude 
palm oil by-products Investigation  in 
progress;  appeal by the 
Colombian palm 
growers dismissed Resolution No. 892 of the 
Andean Community General Secretariat, 
14 January 2005 
Government of Bolivia Del Llano, S.A. 
(Colombia) Attempt to restrict importation 
of oil-seeds from Bolivia Application for 
investigation 
inadmissible Resolution No. 389 of the 
Andean Community 
General Secretariat, 8 May 
2000 
Polipropileno Biorientado del Ecuador Cía. Ltda. Polipropileno del 
Caribe S.A. 
(Colombia) and Polipropileno de 
Venezuela S.A. Refusal to supply input Investigation  
negative Resolution No. 011 of the 
Andean Community 
General Secretariat, 9 September 1997 
Sociedad Mercantil 
Importadora y Exportadora 
de Azúcar IMEZUCAR S.A. 
(Venezuela) Venezuelan and 
Colombian sugar 
mills Price fixing, imposition of 
uses on product sold, export 
restrictions, sale of sugar 
restricted to packers and 
distributors in Venezuela;  abuse of dominant position Investigation  
negative Resolution No. 420 of the 
Council of the Cartagena 
Agreement, 1 August 1996 
Government of Colombia (on 
behalf of the Colombian 
Association of Plastics Industries) Petroquímica de 
Venezuela 
PEQUIVEN Refusal to supply two 
Colombian enterprises with 
ortho-xylene Application for 
investigation 
inadmissible Resolution No. 326 of the 
Council of the Cartagena 
Agreement, 15 October 1992 
a Reference to the most recent document only. 
Source : WTO Secretariat, on the basis of on-line information publ ished by the Andean Commun ity General Secretariat.  
 Viewed at:  http:// www.comunidadandina.org. 
(iii) Price controls 
246. Law No. 81 of 1988 authorizes the Government to control prices.  The Government can 
subject prices to direct control at any stage of pr oduction or distribution of a product, or define the 
criteria that producers and distributors must follow in setting their prices.163  The Supervisory 
Authority for Industry and Trade and the mayors ar e responsible for investigating and sanctioning 
breaches of the price control regulations.164 
247. In practice, the Government does not intervene in the pricing process, except in the case of a 
few products, including petrol, some medicines, natu ral gas and LPG, drinking water, basic sanitation 
and electricity (see IV(6)). 
                         
163 Article 60, Law No. 81 of 1988. 
164 Articles 12 and 17, Decree No. 2876 of 1984. Colombia WT/TPR/S/172 
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(iv) State trading, State-owned enterprises and privatization 
248. In its notifications to the WTO concerning state trading enterprises Colombia included 
enterprises that produce and market spirits.165  Colombia has received and replied166 to questions 
concerning the spirits regime and the Agricultural Marketing Institute (IDEMA ).  Through the IDEMA 
a monopoly was maintained on the importation of agri cultural goods;  this was abolished by Law No. 7 
of 1991, and Decree No. 1. 675 of 1997 wound up the IDEMA.167 
249. In 2004, Colombia notified168 14 departmental enterprises with exclusive rights to produce, 
import, export and sell distilled spirits (with the excep tion of wines, sparkling wines, aperitifs and the 
like, which may be produced and distributed freely).169  Individual traders may export and import 
spirits on the basis of contracts that establish the qua ntity and the department's percentage share of the 
sale price. 
250. State participation in the production and suppl y of other goods and services has traditionally 
been substantial through numerous industrial and commercial enterprises  or semi-public companies.  
At the beginning of 2006 there were 68 decentralized enterprises170 operating in the defence (4), 
development (3), energy (15), justice (1), financia l (20), mining (3), telecommunications (6), social 
security (14) and transport (2) sectors.  The part icipation of State-owned enterprises in trading 
activities is concentrated in the petroleum sector (see IV(4)). 
251. In recent years, Colombia has continued with th e privatization of State-owned enterprises.  
The legal framework for the disposal (privatiza tion) processes is derived from Article 60 of the 
Constitution and Law No. 226 of 1995.  This Law stipulates that the sale of the State holding's in an 
enterprise should be completed in two phases, the fi rst for the "solidarity" sector and the second for 
the general public.  During the first phase, special cond itions with regard to term  and credit have to be 
granted to the "solidarity" sector.171  The main privatizations have been in the electricity172, mining 
and hydrocarbons173 and financial174 sectors (see also Chapter IV).  In 2004, there was established the 
Committee on the Development of Public Assets (C AAP) formed by the Ministry of Finance and 
Public Credit, the National Plaanning Departme nt and the Development Project Finance Fund 
(FONADE), an entity that specializes in project management and investment banking and values, 
structures and sells public assets in accordance with  the strategy approved by the National Economic 
and Social Policy Council. 
                         
165 WTO document G/STR/N/1/COL of 12 January 1996. 
166 WTO documents G/STR/Q1/COL/4 of 24 July 1997, G/STR/Q1/COL/3 of 7 February 1997, 
G/STR/Q1/COL/2 of 25 September 1996, and G/STR/Q1/COL/1 of 5 July 1996. 
167 WTO document G/STR/Q1/COL/4 of 24 July 1997. 
168 WTO documents G/STR/N/7/COL/Rev.1, - G/STR/N/8 /COL/Rev.1, - G/STR/N/9/COL of 4 August 2004. 
169 Under Article 336 of the Political Constitution, Article 61 of Law No. 14 of 1983 and Decree 
No. 1222 of 1986, the departments are independent administrators of the liquor monopoly. 
170 Does not include companies in liquidation or private capitalization. 
171 The "solidarity" sector is defined as the active and pensioned employees of an enterprise, former 
employees not dismissed with good cause, associations of  employees or former empl oyees of the enterprise, 
trade unions, federations and confederations of trade unions, staff funds, mutual investment funds, 
unemployment and pension funds, compensation funds and cooperative entities defined in the legislation on 
cooperatives. 
172 Betania, Chivor, Tasajero, Cartagena, Epsa, Em gesa, Codensa, Electrocosta and Electrocaribe, Isa 
(capitalization), EBSA, Enertolima. 
173 TERUEL, OCENSA, PROMIGAS, Gas Natural. 
174 Banco de Colombia, Corpavi, Banco Popular. WT/TPR/S/172 Trade Policy Review 
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(v) Incentives 
252. The policies on incentives and business promo tion are based on the National Development 
Plan (MiSME support programmes);  CONPES 3280 and 3297 of 2004 ( upgrading of business 
development tools and the internal agenda);  a nd Laws Nos. 590 of 2000 and 905 of 2004, which 
create a legal framework and establish incentives desi gned to encourage and promote enterprise.  The 
programmes are geared towards support for mode rnization and improvements in productive and 
technological capacity, business links, and access to sources of financing and markets.   
253. Incentives to private investment mainly take the form of tax exemptions of various kinds175;  
income tax deductions in connection with invest ments in productive fixed assets (Law No. 863 of 
2003);  and the facilitation of access to credit176 through the promotion of micro-credit, more 
rediscount facilities, extension of the guarantees of  the National Guarantee Fund (FNG) and the use of 
commercial fiduciary arrangements for making investments.177  In 2004, the cost to the revenue of 
income tax exemptions intended to support business activities or the development of new sectors was 
about US$1,447 million.178  
254. Public funds are used to improve business pr oductivity by cofinancing company formation, 
innovation and technology, technical assistance and export promotion programmes.  Thus, support is 
being provided for the National Innovation System  and other initiatives that benefit companies 
through production development and education centres.   Micro, small and medium-sized enterprises 
requiring assistance with restructuring can access benefits obtainable through Colciencias, the 
National Apprenticeship Service (Sena), the MCIT (Colombian Fund for the Technological 
Modernization of MiSMEs – Fomipyme), expor t promotion programmes, and the National 
Productivity and Competitiveness Programme (PNPC).179  The main funds utilized between 2002 and 
2003 were:  Fomipyme, Col$35,000 million (ab out US$13 million);  PNPC, Col$1,061 million 
(US$394,000);  Colciencias, Col$209,246 million (US$77.7 million);  and Sena Col$75,500 million 
(US$28 million).  The Fomipyme Cofinancing Fund operates as an account assigned to the MCIT with an annual allocation of Col$20,000 million (a bout US$8.6 million).  There are also business 
development programmes for supporting busin ess associations between production chains.  
255. The draft Tax Reform submitted to Congress in  2006 includes proposals for changes in the 
tax incentives for business development.  
(a) Credit programmes 
256. The public credit resources available to entrep reneurs are channelled through rediscount lines 
to the financial intermediaries.  During the revi ew period, the official credit programmes were 
affected by the financial crisis of 1998, which led the Government to take measures to support 
financial institutions and debtor s.  This support was channelled through the Financial Institution 
Guarantee Fund (FOGAFIN), which took over cont rol of the public-sector and private financial 
institutions (see IV(7)(ii)).  The cost of this opera tion as a percentage of 2004 GDP is calculated at 2.6 
per cent.
180 
                         
175 Income tax exemptions and tariff concessions on industrial machinery not produced in Colombia, 
among others. 
176 Financial Reform, Law No. 795 of 2003. 
177 National Economic and Social Policy Council (2004). 
178 DIAN data (converted to the average exchange rate for 2004) cited in:  CONPES (2004), page 7. 
179 CONPES (2004), page 7. 
180 Financial Institution Guarantee Fund (2005). Colombia WT/TPR/S/172 
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257. Bancoldex offers special credit facilities to micro, small and medium-sized enterprises 
(see (v) above).  There is a special line of cred it with national coverage for SMEs that develop 
projects designed to improve their productivity and co mpetitiveness.  The loans vary with the size of 
the enterprise and the use of the capital and are intended to finance, among other things, investment in 
fixed assets and projects for obtaining technology or creating infrastructure. 
258. In Bancoldex operations, loans in pesos are subj ect to interest equivalent to the average 
90-day rate on fixed-term deposits (FTD) plus other margins.  The market reference rate is taken as 
the average (weekly) 90-day rate on term certificates of deposit.181  The LIBOR rate, with the addition 
of a certain margin, is applied to loans in US dollars.182  The repayment period for loans may be up to 
ten years, including a grace period for the repayment of  principal of up to three years for operations in 
the local currency and up to one year for operations  in US dollars  For the financial intermediaries 
(first-tier banks), in April 2006 the rates for ente rprises operating in foreign or domestic markets 
varied from FTD plus two percentage points to FT D plus 2.30 percentage points, depending on the 
type of programme and enterprise.183 
259. The main credit programmes for business financ ing for which Bancoldex is responsible 
disbursed about US$1,600 million in 200 2-2003 and US$1,900 m illion in 2004-2005.184  In 
2004-2005, Bancoldex and FINAGRO disbursed US$3,300 million. 
260. Other public-sector credit support progra mmes are implemented through the National 
Guarantee Fund185 (FNG) and the Agricultural Guarantee Fund (FAG).  These guarantees are for 
operators with finance-worthy projects without ad equate backing.  The FNG offers support through 
guarantees where the security takes the form of bonds  which provide an operation with subsidized 
backing up to a percentage of the balance of the pr incipal and current interest throughout the term of 
the loan, or up to a percentage of th e net present worth of the leasing agreement.186  In 2005, FNG 
guarantees amounted to US$1 billion, and of this  95 per cent was for business guarantees;  FAG 
guarantees amounted to US$360 million.  The two typ es of guarantee covered a total of 313,659 
beneficiaries. 
261. To obtain access to an FNG guarantee, it is nece ssary to go to a financial intermediary and 
request a loan.  Through this facility, guarantees can be obtained for credit and leasing operations 
intended to finance working capital, fixed invest ment, business capitalization, research, technological 
development or company start up.  The applications  must come from enterprises in the primary non-
agricultural sector that are not in the "D" or "E" risk category.187 
262. The Industrial Promotion Institute (IFI) was financ ing a wide range of industrial projects, but 
since September 2003 has been in the process of bei ng wound up.  In the course of this process assets 
have been transferred to Bancoldex. 
                         
181 At the beginning of July 2006 the effective rate was 6.18 per cent. 
182 In the first week of July 2006 this rate was approximately 5.6 per cent. 
183 The other rates and programmes can be view ed at:  http://www.bancoldex.com/pdf/tasas. 
184 Calculated using the average exchange rates for 2002 and 2003 on the basis of information from 
CONPES (2004), page 12. 
185 See http://www.fng.gov.co/fng.nsf. 
186 CONPES (2004), page 13. 
187 See http://www.fng.gov.co/fng.nsf. WT/TPR/S/172 Trade Policy Review 
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263. As noted in Chapter IV(2), the Government operates rural credit support programmes through 
special lines of credit from the Fund for Fi nancing the Agricultural Sector (FINAGRO).188 
264. In CONPES policy document, No. 3280 the Nati onal Economic and Social Policy Council 
pointed out that the wide range of business devel opment support programmes ha d  introduced a lack 
of uniformity in the criteria for applying, allo cating and evaluating support measures, which could 
result in inconsistencies and dup lication and reduce their impact. 
(b) Trade-related investment and other measures 
265. Colombia has notified189 to the WTO as a trade-related investment measure (TRIM) the 
agricultural production absorption policy defined in  Law No. 101 (Article 3) of 1993 and Decree 
No. 1279 (Article 4(ñ)) of 1994.  Decree No. 2439 of 1994 imposed controls on the importation of 
products subject to the absorption policy .  In November 1999, Colombia applied190 to the WTO 
Council for Trade in Goods for an extension of the transition period for the application of the 
absorption policy and obtained an initial extensi on up to 31 December 2001, and subsequently 
requested and obtained an additional extension up to 31 December 2003.191  Colombia has notified192 
that Decree No. 1473 of 2004 repealed Decree No. 2439 of 1994, which established the approvals for 
the importation of products subject to the absorption policy. 
266. With the abolition of the controls on imports of  the products that were subject to the domestic 
production absorption policy the specific mechanis m which implemented that policy has been 
eliminated. 
267. At present, the mechanism for the administrati on of tariff quotas, through public auctions, is 
enabling those importers who offer to purchase th e largest volume of domestic production for a given 
import quota to import at the in-quota tariff rate (see Chapter IV(2)). 
268. Between 1993 and 1999, Colombia and other members of the Andean Community maintained 
a Complementarity Agreement for the Automotive Sector which required assembly enterprises to 
incorporate a minimum of originating material.  In 1995, Colombia notified193 that Agreement to the 
WTO as a TRIM.  In September 1999, the Agreement was replaced by another, in force since 
January 2000, which does not impose any subregional content requirements. 
269. Colombia has notified194 that the provisions relating to TRIMS are published in the country's 
Official Journal.195  
(c) Assistance for research, development and improved competitiveness 
270. R&D costs represented 0.38 per cent of GDP in 20 03, 0.53 per cent in 2004, and 0.53 per cent 
in 2005;  the target for 2006 is 0.6 per cent.196  Colciencias coordinates the National Science and 
                         
188 See http://www.fogafin.gov.co/. 
189 WTO document G/TRIMS/N/1/COL/2 of 21 September 1995. 
190 WTO documents G/C/W/169 of 1 December 1999 , G/C/W/169/Add.1 of 22 December 1999, and 
G/C/W/285/Rev.1 of 31 July 2001. 
191 WTO document G/L/498 of 9 November 2001. 
192 WTO document G/TRIMS/N/1/COL/3 of 10 June 2004. 
193 WTO document G/TRIMS/N/1/COL/1 of 11 April 1995. 
194 WTO document G/TRIMS/N/2/Rev.14 of 22 September 2005. 
195 See www.minjusticia.gov.co and www.banrep.gov.co. 
196 Colciencias, http://zulia.colciencias.gov.co/portalcol/index.jsp. Colombia WT/TPR/S/172 
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Technology System (Law No. 29 of 1990), whic h supports the development of science and 
technology in the primary, industrial, services and ot her sectors.  Among the principal services offered 
by Colciencias are the formulation and coordination  of science and technology policy, the financing 
of research, innovation and technological devel opment projects and financial support for the 
establishment and consolidation of technological development centres. 
271. Article 12 of Law No. 633 of 2000 introduced ta x deductions for investment in scientific and 
technological development projects, a scheme under which 125 per cent of the value invested in the 
tax period in which the investment was made can be deducted from income.  If the investment is made 
in vocational training projects developed by institu tions of higher education, the deduction may not 
exceed 20 per cent of the taxable income determined before subtracting the value of the investment. 
272. Other incentives include exemption from VAT for scientific and technological development 
projects.197  Article 18(8) of Law No. 788 of 2002 exem pts from income tax the income generated by 
new medicinal and software products developed in Co lombia and protected by new patents, if they 
have a high domestic scientific  and technological research content certified by Colciencias. 
(d) Other support schemes 
273. Law No. 209 of 1995 created the Savings and Petroleum Stabilization Fund (FAEP), 
administered by the Bank of the Republic, for fi nancing regional development projects.  Other 
regional development incentives can be found sca ttered among numerous instruments and incentive 
measures, which include initiatives for border z ones, free zones and special economic zones. 
274. The price of petrol, for both final consumers and producers, is regulated at a level below the 
world market price (see IV(4)).  The authorities have indicated that in mid-2006 a programme aimed 
at establishing parity between domestic prices and world market prices was being implemented. 
(vi) Government procurement 
275. Although it has observer status, Colombia is not a member of the WTO's Plurilateral 
Agreement on Government Procurement.  Colomb ia offers national treatment in government 
procurement to Mexico and Venezuela within th e framework of the G-3 Agreement.  Under the 
Andean Community government procurement regulati ons, Colombia guarantees national treatment to 
enterprises in other Community members in contracting for services but not goods.  National treatment is also granted to goods and services orig inating in countries which grant similar treatment 
to offers of Colombian goods and services. 
276. The main legal instruments concerning government procurement are Law No. 80 of 1993 
(General Law on Government Procurement), Preside ntial Directive No. 12 of 2002, Decree No. 2170 
of 2002, Law No. 527 of 1999 and Decree No. 855 of 1994.  Colombia maintains a single government 
procurement portal.
198  At the beginning of 2006 the legal framework for government procurement 
was under review (draft Law No. 20 of 2005) for the purpose of making the process of awarding public contracts more efficient.  According to th e authorities, a typical procurement process takes on 
average four months, and the proposed reform s should shorten these times considerably.  
                         
197 See http://zulia.colciencias.gov.co/portalcol/downloads/archivosContenido/56.pdf. 
198 Inter-American Organization of Government Procurement Institutions (http://www.contratos. 
gov.co/portal/page?_pageid=35,1128,35_3117&_dad=portal&_schema=PORTA). WT/TPR/S/172 Trade Policy Review 
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277. According to the calculations made by the authorities199, the value of public contracts 
awarded in 2004 (including centralized and decentralized entities) amounted to between 
Col$20.4 billion and Col$34.3 billion (between US $7,900 and 13,000 million approximately), of 
which 75.1 per cent was administered by national-le vel entities and 24.9 per cent by regional entities. 
278. Law No. 816 of 2003 provides support for domestic industry by granting between 10 and 
20 percentage points to offers of Colombian goods and services and between 5 and 15 percentage 
points to foreign goods and services.   Thus, depending on the evaluation,  an attempt is made to favour 
Colombian goods and services.  If, after qualification,  the offer of a foreign bidder is on equal terms 
with that of a domestic bidder, the cont ract is awarded to the domestic bidder. 
279. There are competitive bidding and single tenderi ng procedures.  Competitive bidding is the 
general rule and single tendering is an exception ma de in special situations in which competitive 
bidding is not viable.200 
280. There are also special laws on government purchasing in cases such as contracts for the 
exploration and exploitation of natu ral resources;  public services;  State welfare enterprises;  personal 
communications services, mobile telephony, long-dist ance telephony and television;  postal services;  
radio broadcasting;  Bank of the Republic;  and the National Television Commission.  
281. The measures for ensuring transparency are thro ugh the publication of invitations to tender, 
the dissemination of information for bidders and cont ract documents, the publicizing of awards and of 
the rules and regulations on procurement.  State en tities must report their tenders to the Chamber of 
Commerce of their jurisdiction in the first five days  of each month.  Between ten and 20 calendar days 
prior to the issuing of the tender a maximum of three notices must be published in widely circulated 
newspapers and in other media at intervals of betw een two and five days.  The information is also 
published on the web page of the procuring entity and the Single Procurement Portal. 
282. Contractors wishing to obtain supply, public works or consultancy contracts must register in 
the Single Bidders Register (RUP), which is admini stered by the Chambers of Commerce.  Foreign 
natural and legal persons without domicile or a branch in Colombia must have an agent domiciled in 
Colombia with powers to submit a bid, conclude a contract and act as representative in and out of 
court.  Likewise, they must submit proof of thei r existence and legal representation, as well as a 
document to show that they are registered in a simila r register in the country in which they have their 
principal domicile.  Failing that, they must subm it certification of registration in the RUP. 
283. The management of government procurement is subject to three types of control:  disciplinary 
(exercised by the Office of the Attorney General of  the Nation), fiscal (exercised by the Comptroller 
General of the Republic) and penal (exercised by th e Office of the Prosecutor General of the Nation). 
284. The Administration's decisions may be subj ect to review through applications for 
reconsideration or appeal.  As far as the pre-cont ractual phase is concerned, it is possible to bring 
actions against the decision awarding the contract and individual procedural decisions, and as regards 
performance of the contract, the appropriate course is to bring a trade dispute action.  Likewise, it is 
possible to employ direct dispute settlement mechan isms such as conciliation and technical expertise, 
                         
199 Estimates from Government Procurement Project BIRF-DNP, based on information supplied by the  
National Press - Single Procurement Journal, Office of the Comptroller General of the Republic - Rendering of 
Annual Accounts, Financial Information System SIIF - Nation, District Surveillance Office - Rendering of 
Annual Accounts and information  supplied by the regional authorities. 
200 See http://www.transparencia.gov.co/guias/contratation.asp#2. Colombia WT/TPR/S/172 
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together with which provisional measures may be or dered and the case judged in accordance with the 
Code of Civil Procedure and the Commercial Code  and the provisions of CAN Decision No. 486. 
(vii) Intellectual property rights 
285. The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) 
was incorporated in the legislation with the ratif ication of the Marrakesh Agreement by Law No. 170 
of 1994.  As a developing country, Colombia had up to 1 January 2000 to implement the TRIPS 
Agreement. 
286. Table AIII.3 lists the Colombian laws and regulations dealing with TRIPS issues.  Colombia 
has notified the WTO of its relevant legal instruments201 and the Andean Community's Cartagena 
Agreement.202  The Council for TRIPS reviewed Colombia 's legislation in June 2001.  Colombia 
received and replied to ques tions from five delegations203;  the questions related, in particular, to the 
issue of enforcement. 
287. The Colombian legal framework for the protec tion of intellectual property is established by 
the Andean Community's Cartagena Agreement and domestic legislation.  The Andean legislation 
deals with industrial property, copyright and rela ted rights, access to genetic resources, industrial 
property and the protection of new plant varieties.   The Andean common industrial property regime 
(2000) was introduced by Decision No. 486, which brought the Andean common regime into line with the TRIPS Agreement. 
288. Within the context of TRIPS, Colombia, toge ther with other WTO Members, has presented 
communications
204 on topics relating to the relationshi p between the TRIPS Agreement and the 
Convention on Biological Diversity and the prot ection of traditional knowledge;  and biological 
resources and traditional knowledge used in inventions. 
289. Colombia has notified the WTO of three governme nt agencies as contact points:  the National 
Copyright Directorate (DNDA) for copyright issues ;  the Supervisory Authority for Industry and 
Trade (SIC) for industrial property issues;  and the Colombian Agricultural Institute for new varieties 
of plants.205 
290. The DNDA, under the Ministry of the Interior and Justice, formulates and implements policy 
on copyright and related rights and oversees the soci eties for the collective ma nagement of recognized 
rights.  The DNDA administers the National Copy right Register for literary and artistic works.206 The 
SIC administers the National Industrial Property Sy stem and grants rights in new creations and 
commercial symbols used for distinguishing products and services.207  The SIC also deals with issues 
                         
201 WTO documents IP/N/1/COL/1 of 14 August 2000, IP/N/1/COL/C/1 of 19 July 2000, 
IP/N/1/COL/C/2 of 16 August 2000, IP/N/1/COL/C/3 of  19 July 2000, IP/N/1/COL/C/4 of 19 July 2000, 
IP/N/1/COL/I/1 of 18 July 2000, IP /N/1/COL/I/2 of 19 July 2000, IP/N/1/COL/I/3 of 30 October 2000, 
IP/N/1/COL/P/1 of 19 July 2000, IP /N/1/COL/P/2 of 17 July 2000, IP/N /1/COL/P/3 of 19 July 2000, and 
IP/N/1/COL/P/4 of 19 July 2000. 
202 WTO document IP/N/4/COL/1 of 19 August 1997. 
203 The questions asked by Canada, the European Union, Japan, Switzerland and the United States, 
together with Colombia's replies are contained in WTO document WTO IP/Q/COL/1 - IP/Q2/COL/1 - 
IP/Q3/COL/1 - IP/Q4/COL/1 of 27 June 2001. 
204 WTO documents IP/C/W/459 of 18 November 2005, IP/C/W/442 of 18 March 2005, 
IP/C/W/429/Rev.1/Add.2 of 20 January 2005, and IP/C/W/165 of 3 November 1999. 
205 WTO document IP/N/3/Rev.9 of 8 November 2005. 
206 Decree No. 2041 of 29 August 1991;  online info rmation viewed at:  http://www.derautor.gov.co. 
207 Viewed at:  http://www.sic.gov.co. WT/TPR/S/172 Trade Policy Review 
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relating to the protection of geographical indications , inasmuch as geographical indications are treated 
as appellations of origin, under industrial property protection.208  The ICA applies the protection 
regime to new plant varieties, grants breeder's certificates and administers the National Register of 
Protected Plant Varieties.209 
291. Colombia is a member of the World Intellectual Property Organization (1980) and is a 
signatory to several treaties (Table III.15).  
Table III.15 
Participation in intellectual proper ty protection treaties, March 2006 
Convention/Agreement Date of accession 
Paris Convention for the Protection of Industrial Prope rty (1883) 3 September 1996 (Colombia is party to the 
Stockholm Act) 
Berne Convention for the Protection of Lite rary and Artistic Works (1886) 7 March 1998 (Colombia is party to the Paris Act) 
International Convention for the Protection of New Varieties of Plants (1961) 13 September 1996 
Patent Cooperation Treaty (1970) 28 February 2001 
Rome Convention for the Protection of Performers, Producers of Phonograms 
and Broadcasting Organizations 17 September 1976 
Geneva Convention for the Protection of Producers of Phonograms Against  
Unauthorized Duplication of Their Phonograms 16 May 1994 
WIPO Copyright Treaty 6 March 2002 
WIPO Performance and Phonograms Treaty 20 May 2002 
Source : WTO Secretariat, on the basis of Wo rld Intellectual Property Orga nization data.  Online information.  Viewed at:  
 http://www.wipo.int/treati es/en/ShowResults.jsp?searc h_what=C&country_id=39C. 
292. All applications relating to industrial property mu st be filed with the SIC.  Obtaining a patent 
takes, on average, four years.  If the authorities require the submission of undisclosed test data as a condition of approving the marketing of some medi cament, these data are temporarily protected and 
may not be used in another marketing application.  The relevant Colombian legislation is set forth in 
Decree No. 2085 of 2002.  Since September 2004, Colomb ia has protected the test data for five years 
reckoned from the approval for marketing in Colo mbia.  Decision No. 632 of 2006 of the Commission 
of the Andean Community
210 clarified Article 266.2 of Decision No. 486 to specify that a member 
country retains the right to establish periods durin g which third parties will not be authorized to 
market a product on the basis of test data without  the consent of the person who previously submitted 
those data. 
293. Decision No. 486 establishes that on the expiration of a period of three years following the 
granting of the patent or four years following the application, whichever is longer, a compulsory 
licence may be granted mainly for the industrial manu facture of the product covered by the patent, but 
only if the patent has not been work ed on a scale sufficient to satisfy the demands of the market or the 
exploitation of the invention has been suspended for more than one year, and provided that the 
applicant has previously made efforts to obtain a contractual licence from the patent holder.  In the 
case of semiconductor technology, a compulsory licence will be authorized only for public non-
commercial use or to remedy a practi ce declared to be anti-competitive. 
294. A compulsory licence may be granted for reasons  of public interest, emergency or national 
security;  and for patent dependency, at any time, upo n request of the owner of a patent the working of 
which necessarily requires the use of another pate nt, provided the that owner in question has been 
                         
208 Geographical indications are divided into appellations of origin and indications of source;  in the 
case of the latter there are no actions for infringement. 
209 Decree No. 533 of 8 March 1994. 
210 Adopted 6 April 2006 (http://www.comunidadandina.org/normativa/dec/D632.htm;  
http://www.comunidadandina.org/prensa/notas/np6-4-06.htm). Colombia WT/TPR/S/172 
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unable to secure a contractual licence on reasonabl e commercial terms.  Compulsory licences also 
may be granted, either ex officio or at the request of a party, in the event of practices detrimental to 
the exercise of free competition, especially where th ey constitute an abuse of a dominant position.  
Compulsory licences are subject to adequate rem uneration and must be used predominantly for the 
supply of the domestic market. 
295. Decision No. 486 permits parallel imports of pr oducts protected by patents, layout-designs, 
trademarks or industrial designs from any country. 
(a) Enforcement 
296. Colombia has provided information on enforcement in its replies to the list of questions posed 
within the context of the TRIPS Agreement.211 
297. The possible actions in the area of industrial property can be classified in two groups:  
(i) administrative actions within the SIC relating to third-party oppositions and border measures, as 
well as to the cancellation of registrations for non- use, being common or generic or well-known;  and 
(ii) judicial actions which may be related with ci vil proceedings, administrative court cases, unfair 
competition proceedings or criminal proceedings. 
298. During the period under review, amendmen ts were made to Penal Code laws212 establishing 
new offences and increasing the penalties for viol ation of intellectual pr operty rights, including 
imprisonment and fines depending on the offen ce committed.  Law No. 1032 of 22 June 2006 
increased the penalties described in Articles 271 a nd 272 of the Penal Code, establishing a minimum 
sentence of four years and a maximum of eight, and fines of between 20 and 1,000 statutory minimum 
monthly wages.  Moreover, the phonogram was included as a passive subject of the offence. 
299. The Commercial Code was also amended with co mpanies being required to report on the state 
of compliance with the intellectual pr operty regulations in annual reports.213  In 1999, the Office of 
the Prosecutor General established a National Prosecution Department specializing in the 
investigation of intellectual prope rty and telecommunications offences.214  The year 1999 also saw the 
signing of an Anti-Piracy Agreement between the pub lic and the private sector as part of a campaign 
to raise awareness of copyright and the struggle against piracy.215 
300. Any party initiating an action for infringement of  industrial property rights may request the 
competent authority to order immediate provisional measures, such as withdrawal from commercial channels and suspension of the im portation or exportati on of products and closure of the business 
belonging to the accused.
216  Andean Decision No. 486 stipulates that the owner of a patent, utility 
model, industrial design, trademark, slogan or trad e name may initiate an action for damages without 
the need to request provisional measures.  Likewise, it stipulates that the owner of a patent has the 
right to take legal action for damages resulting fro m the unauthorized use of the patent.  There are 
fines for evading or tampering with the copyright protection mechanisms, including for anyone who manufactures or sells devices that can be  used to decode a satellite signal. 
                         
211 WTO documents IP/N/6/COL/1 of 29 September 2000, and IP/N/6/COL/1/Add.1 of 24 November 2000. 
212 Law No. 599 of 24 July 2000 and amendments introduced by Law No. 890 of 2004 and by Law 
No. 803 of 2003. 
213 Law No. 603 of 27 July 2000. 
214 Resolution No. 888 of 31 May 1999. 
215 Information online:  http://www.convenioantipirateria.org.co. 
216 Title XV, Chapter 1 of Andean Decision No. 486 of 2000. WT/TPR/S/172 Trade Policy Review 
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301. The competent authority in administrative pro ceedings is the SIC.  If the complaining party 
decides to institute legal proceedings, the civil ju dges of the specialized divisions are the authorities 
empowered to order provisional measures and judge th e case in accordance w ith the Code of Civil 
Procedure and the Commercial Code and CAN Deci sion No. 486.  The Prosecutor General's Office 
conducts the investigation and the accused is trie d before the competent courts, which take the 
measures necessary to safeguard the right.