WORLD TRADE
ORGANIZATIONG/VAL/N/2/COL/1
24 January 2001
(01-0364)
Committee on Customs Valuation Original:  Spanish
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION
OF THE AGREEMENT ON CUSTOMS VALUATION
Check-List of Issues
COLOMBIA
The following communication, dated 10 January 2001, has been received from the Permanent
Mission of Colombia.
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Check-List of Issues
1. Questions concerning Article 1:
(a) Sales between related persons:
(i) Are sales between related person s subject to special provisions?
No.
(ii) Is the fact of intercompany prices prim a facie considered as grounds for regarding
the respective prices as being influenced?
No.
(iii) What is the provision for giving th e communication of the afore-mentioned
grounds in writing if the importer so requests?  (Article 1.2(a) )
See Article 178 (Influence of the relationship on th e price paid or payable) of National Customs
and Excise Directorate (DIAN) Resolution 4240/2000.
(iv) How has Article 1.2(b) been implemented?
Articles 179 and 180 of DIAN Resolution 4240/2000 regulate the use of the reference values
provided for in the Agreement.
(b) Price of lost or damaged goods:
Are there any special provisions or practica l arrangements concerning the valuation of
lost or damaged goods?
Yes, Article 205 (Spoiled, damaged or dete riorated goods) of DIAN Resolution 4240/2000.G/VAL/N/2/COL/1
Page 2
2. How has the provision of Article 4 to allow the importer an option to reverse the order of
application of Articles 5 and 6 been implemented?
Thus far, no importer has asked to reverse the order of application of Articles 5 and 6 of the
Agreement.
3. How has Article 5.2 been implemented?
This Article has not been applied to date.
4. How has Article 6.2 been implemented?
This Article has not been applied to date.
5. Questions concerning Article 7:
(a) What provisions have been made for making  value determinations pursuant to Article 7?
See Articles 192 to 217 (Application of the "l ast recourse" method, prohibitions and special
cases) of DIAN Resolution 4240.
(b) What is the provision for informing the importer of the customs value determined under
Article 7?
As stated in the domestic customs legislati on (Chapter XIV, Secti on II of Decree 2685/1999 and
Title XIII, Chapter III of DIAN Resolution 4240) , the provisions are of a general nature.
(c) Are the prohibitions found in Article 7.2 delineated?
Yes, see Article 193 of DIAN Resolution 4240/2000.
6. How have the options found in Article 8.2 been  handled?  In the case of f.o.b. application,
are ex-factory prices also accepted?
According to Article 182 of DIAN Resolution 4240, the costs referred to in Article 8.2 of the
Agreement include the carriage, handling, adaptation for export and delivery of the goods to the port or
point of embarkation, freight costs from the first point of embarkation until the place of import into
Colombia, and insurance for the transport of the goods.
Colombia applies c.i.f. pric es for valuation.  However, when f.o.b. prices are accepted,
ex-factory prices, understood as "ex-works" according to Incoterms, are also accepted and the necessary
adjustments under Article 8 are made.
7. Where is the rate of exchange pub lished, as required by Article 9.1?
The rate of exchange is published by the Central Bank ( Banco de La República ) and the
Valuation Division of the DIAN publishes the inform ation on a weekly basis through the electronic data
network for internal or external consultation a nd through circulars made available to the public
(e-mail:  www.dian.gov.co).G/VAL/N/2/COL/1
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8. What steps have been taken to ensure co nfidentiality, as required by Article 10?
According to Article 258 of Decree 2685/1999, when  the information supplied for the purposes
of customs valuation is of a confidential nature, it shall not be disclosed by the customs authorities
without the express authorization of the pe rson or government by which it was supplied.
9. Questions concerning Article 11:
(a) What rights of appeal are open to the importer or any other person?
With respect to the determination of customs value, Colombian customs law recognizes the
right of application for reconsideration.
(b) How is he to be informed of his right to further appeal?
In addition to the application for reconsiderati on, Colombia recognizes the right to challenge
a case before the administrative courts, thus offering  an additional remedy to the one mentioned in the
reply to the previous question.
10. Provide information on the publication, as required by Article 12, of:
(a) (i) the relevant national laws;
Published in the Official Journal (www.imprenta(@colomsat.net.co).
(ii) the regulations concerning th e application of the Agreement;
Published in the Official Journal (www.imprenta@colomsat.net.co).
(iii) the judicial decision;
Published in the Gazette of  the Constitutional Court.
and administrative rulings of genera l application relating to the Agreement;
Published in the Official Journal.
(iv) general or specific laws being referred  to in the rules of  implementation or
application.
Published in the Official Journal.
(b) Is the publication of further rules antici pated?  Which topics would they cover?
There are plans to amend DIAN Resolution 4240 c oncerning procedures for the implementation
of the provisions governing customs valuation c ontained in Decree 2685 of 1999.  Similarly, there are
plans to regulate the application of Article 214 of  the said Resolution as regards the valuation of
educational software and entertainment software.G/VAL/N/2/COL/1
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11. Questions concerning Article 13:
(a) How is the obligation of Article 13 (last sentence) being dealt wi th in the respective
legislation?
Article 172 of DIAN Resolution 4240/2000 affords the importer the possibility of posting a
guarantee when the customs authorities have any doubt s as to the declared value or if it becomes
necessary to delay the final determination of the value of the goods.
(b) Have additional explanations been laid down?
No.
12. Questions concerning Article 16:
(a) Does the respective national legislation cont ain a provision requiring customs authorities
to give an explanation in writing as to how the customs value was determined?
Article 509 of Decree 2685/1999 establishes the terms and conditions for bringing special
charges against the customs authorities within a pe riod of 30 days after the alleged commission of the
offence by the customs administration has been established.  These charges must include, inter alia ,
the official proposal for settlement based on the ap plication of a customs valuation method, which, in its
turn, must be identified in the court order.
(b) Are there any further regulations co ncerning an above-mentioned request?
Yes:  Title XIII, Chapter III of DIAN Resolution 4240/2000.
13. How have the Interpretative Note s of the Agreement been included?
The Interpretative Notes of the Agreement are contained in And ean Decision 378 of 1995
adopting the WTO Agreement on Customs Valuation.  They have not been expressly incorporated in
domestic legislation, since under Article 3 of the Tr eaty Creating the Court of Justice of the Andean
Community (Cochabamba Protocol of 1996), "Decisions of the Andean  Council of Foreign Ministers or
of the Commission and Resolutions of the General S ecretariat shall be directly applicable in Member
Countries as of the date they are published in  the Official Gazette of the Agreement …".
14. How have the provisions of the Decision on the Treatment of In terest Charges in the
Customs Value of Imported Goods been implemented?
As regards deductions in the price actual ly paid or payable, Article 184 of DIAN
Resolution 4240 stipulates that in accordance with th e requirements set forth in Article 7 of Andean
Decision 378, which, in its turn, is based on a D ecision of the Committee on Customs Valuation, the
customs value shall not include interest charges.
15. For those countries applying paragraph 2 of  the Decision on the Valuation of Carrier
Media Bearing Software for Data Processing Equipment, how have the provisions of this
paragraph been implemented?
The implementation of the provisions of th e Decision on the Valuation of Carrier Media
Bearing Software for Data-Processing Equi pment is governed by Article 214 of DIAN
Resolution 4240/2000.
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