COLOMBIA – CUSTOMS MEASURES ON IMPORTATION OF CERTAIN GOODS FROM PANAMA
Document: Request for Consultations by Panama
Date: 25 July 2006
Document codes: WT/DS348/1; G/L/782; G/VAL/D/8
Complainant: Panama
Respondent: Colombia
Dispute stage: Consultation
Agreements cited: Art. I:1, II:1, V:6, X:1, XI:1, XIII:1, X:3(a)  GATT 1994Art. 1, 2, 3, 4, 5, 6, 7, 13  Customs valuation

Spanish

COLOMBIA – CUSTOMS MEASURES ON IMPORTATION
OF CERTAIN GOODS FROM PANAMA

Request for Consultations by Panama

 The following communication, dated 20 July 2006, from the delegation of Panama to the
delegation of Colombia and to the Chairman of the Dispute Settlement Body, is circulated in
accordance with Article 4.4 of the DSU.

 My authorities have instructed me to requ est consultations with Colombia, pursuant to
Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes
("DSU") and Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994")
and Articles 19.1 and 19.2 of the Agreement on Implementation of Article VII of the GATT 1994
("Agreement on Customs Valuation") with respect to certain Colombian customs measures on the
importation of certain goods from Panama. This re quest is being made after various efforts by
Panama to discuss the matter with Colombia, in th e hope of avoiding the initiation of a dispute.
However, those efforts were to no avail.
1

 First, Colombia has established and applies indicative unit prices or estimated prices for
customs valuation purposes for certain goods that or iginate in and/or are imported from Panama and
specified other countries or customs territories. The application of these indicative or estimated prices
results in reference prices based on which importe rs of the affected goods must determine and pay
customs duties and other duties or charges and taxe s, and not based on the valuation methods set out
in the Agreement on Customs Valuation. If the refe rence prices are not followed, then in practice the
goods cannot be imported into Colombia. The mech anism based on indicative or estimated prices
("the indicative or estimated price mechanism") app lies exclusively to certain goods (as described in
the relevant legislative acts) originating in Panama and specified other countries or customs
territories. Section A of the Annex contains a list of legislative acts that establish the indicative or
estimated price mechanism.

 The indicative or estimated price mechanism a ppears to be inconsistent with Colombia's
obligations under Articles 1 to 7 and 13 of the Agreement on Customs Valu ation and the General
Notes in its Annex 1, as well as under Articles XI:1, XIII:1, II:1(a), II:1(b), X:1, X:3(a) and I:1 of the
GATT 1994.

 Second, Colombia has established a require ment that all goods falling under Chapters 50
to 64 of Colombia's Customs Tariff (textile and f ootwear products) that originate in and/or are
imported from Panama or China must enter into Colombia only through specified ports of entry (the

1 G/VAL/W/154, G/C/W/548, Meeting of the Council for Trade in Goods of 12 July 2006.

"restriction on the ports of entry"). Such goods must be imported exclusively through the two
designated ports: the Special Administration for Customs Service at El Dorado Airport and the
Special Customs Administration at Barranquilla. This restriction on the ports of entry applies only to
such goods coming from Panama or China and not to goods coming directly from third countries or
customs territories. The Resolutions establishing th e restriction on the ports of entry for such goods
are set out in Section B of the Annex.

 The restriction on the ports of entry appears to be inconsistent with Colombia's obligations
under Articles XI:1, XIII:1, V:6 and I:1 of the GATT 1994.

Third, Colombia has established a requireme nt that commercial invoices of goods coming
from the Free Zone of Colon must include, in add ition to the regular requirements, the name of the
buyer in Colombia, its address and its Tax Identification Number ("NIT") (the "commercial invoices
requirement"). This commercial invoices requirement applies only to goods coming from the Free
Zone of Colon and not to goods originating in th ird countries or customs territories. The Resolution
establishing the commercial invoices requirement is set out in Section C of the Annex.

 The commercial invoices requirement appears to be inconsistent with Co lombia's obligations
under Articles XI:1, XIII:1, Article V:6 and Article I:1 of the GATT 1994.

 For each of the measures at issu e, this request also covers any related acts, amendments or
extensions, as well as any related practices not listed in the Annex.

 The measures at issue appear to nullify or im pair the benefits accruing to Panama under the
cited agreements.

 Panama reserves the right to raise additiona l claims and legal issues regarding the above-
mentioned measures during the consultations.

 My authorities look forward to receiving your re ply to this request. I propose that the date
and venue of the consultations be agreed between our missions.

ANNEX

A. The indicative or estimated price mechanism

The indicative or estimated price mechanism as established by the following legislative acts,
including any related instruments and amendments thereto and related practices:

• Resolución No. 05474 de la Dirección de Impuestos y Aduanas Nacionales de
29 de junio de 2005 "[p]or la cual se establecen Precios Indicativos".

• Resolución No. 07908 de la Dirección de Impuestos y Aduanas Nacionales de
1 de septiembre de 2005 "[p]or la cual se establecen Precios Indicativos".

• Resolución No. 08628 de la Dirección de Impuestos y Aduanas Nacionales de
20 de septiembre de 2005 "[p]or la cual se establecen Precios Indicativos".

• Resolución No. 08743 de la Dirección de Impuestos y Aduanas Nacionales de
22 de septiembre de 2005 "[p]or la cual se establecen precios indicativos de textiles".

• Resolución No. 09477 de la Dirección de Impuestos y Aduanas Nacionales de
12 de octubre de 2005 "[p]or la cual se establecen Precios Indicativo".

• Resolución No. 09478 de la Dirección de Impuestos y Aduanas Nacionales de
12 de octubre de 2005 "[p]or la cual se establecen Precios Estimados".

• Resolución No. 10760 de la Dirección de Impuestos y Aduanas Nacionales de
15 de noviembre de 2005 "[p]or la cual se establecen precios indicativos".

• Resolución No. 10953 de la Dirección de Impuestos y Aduanas Nacionales de
18 de noviembre de 2005 "[p]or la cual se establecen precios indicativos".

• Resolución No. 11285 de la Dirección de Impuestos y Aduanas Nacionales de
25 de noviembre de 2005 "[p]or la cual se establecen Precios Indicativos".

• Resolución No. 11439 de la Dirección de Impuestos y Aduanas Nacionales de
29 de noviembre de 2005 "[p]or la cual se establecen Precios Indicativos".

• Resolución No. 4953 de la Dirección de Impuestos y Aduanas Nacionales de
18 de mayo de 2006 "[p]or la cual se establecen precios indicativos para juguetes
rellenos y no rellenos".

• Colombia's Custom Code (Decree No. 2685 of 1999) in particular Titles V and VI, its
Regulations (Resolution No. 4240 of 2000) and the application thereof.

B. The restriction on the ports of entry into Colombia

The restriction on the ports of entry as established in the following resolutions, including any related
instruments and amendments thereto:

• Resolución No. 05796 de la Dirección de Impuestos y Aduanas Nacionales de
importación de mercancías originarias y/o provenientes de la República de Panamá
y de la República Popular China".

• Resolución No. 12465 de la Dirección de Impuestos y Aduanas Nacionales de
mercancías originarias y/o provenientes de la República de Panamá y de la
República Popular China".

• Resolución No. 06691 de la Dirección de Impuestos y Aduanas Nacionales de
originarias y/o provenientes de la Repúb lica de Panamá y de la República Popular
China".

C. The commercial invoices requirement

The commercial invoices requirement as established in the following resolution, including any related
instruments and amendments thereto:

• Resolución No. 10118 de la Dirección Gen eral de Impuestos y Aduanas Nacionales
de 27 de octubre de 2005 , " [p]or la cual se modifica parcialmente la
Resolución 4240 de 2000".