GUIA_LEGAL_CHAPTER_4_FOREIGN TRADE CUSTOMS.pdf

TO DOING
BUSINESS IN
COLOMBIA
LEGAL
GUIDE

This document reflects the valid Colombian
legislation at the date of its development and it seeks
to provide general and basic information of the
Colombian law. This message does not represent or
replace legal counsel of a specific or particular
matter. Such legal counsel must be obtained from
specialized legal services. To that effect, we suggest
that you contact any of the law firms that can be
found in the Investor’s Services Directory located in
the webpage of ProColombia
LEGAL
GUIDE
TO DOING BUSINESS
IN COLOMBIA
www.procolombia.co

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Specific Component. The rate of the specific component of the consumption tax applied to liquors, aperitifs or similar, for each alcoholic degree per
units of 750 cubic centimeters or its equivalent, shall be COP $325. The applicable rate for wines and wine aperitifs shall be $220 per unit of 750
cubic centimeters or its equivalent.
2
Ad valorem component. The ad valorem component of the consumption tax on spirits, aperitifs and similar products will be settled by applying a rate
of 25% on the retail price, before taxes and/or participation, certified by the National Department of Statistics (DANE). The applicable rate for wines
and wine aperitifs
1. Colombia, as a of the World Trade Organization
(WTO), has foreign trade legislation based on
freedom of trade.
2. For the purposes of establishing tariffs and other
foreign trade measures, Colombia uses The Harmoni-
zed Commodity Description and Coding System (HS)
approved by the World Customs Organization
(WCO), now compiled in Decree 1881 of 2021.
Tariff rates generally range between 0%, 5%, 10% and
15%. In some specific cases, such as agricultural products,
vehicles or clothing, these tariffs may be higher.
Imports are also subject to Value Added Tax (VAT), the
general rate of which is currently 19%.
Decree 2598 of 2022 partially modified Decree 1881 of
2021 establishing a forty per cent (40%) ad valorem rate
on imports from any Most Favored Nation (MFN) for
products belonging to the apparel and textile sector. Thus,
goods such as suits, coats, shirts, among other garments
and clothing, are subject to such taxation. However, the
decree that established this tax didn’t modify any
preferential relief program currently active in Colombia. In
other words, the tariff applies to articles imported from
countries that do not have trade agreements in force with
Colombia.
Decree 809 of 2023 partially modified Decree 1881 of
2021, establishing, for a period of twelve (12) months a
0% tariff for the import of 74 commodities used in the
production of agricultural goods. Some of the commodities
that will benefit are walnuts for planting, veterinary
medicines, fungicides, albumins and certain fertilizers.
In addition, some goods, such as liquor and certain motor
vehicles, are subject to the consumption tax. In the first case,
the taxable base and the applicable rate are determined by
a specific1
and an ad valorem component2
. Whereas, for
Chapter 4
Basic information on the Colombian Foreign Trade and
Customs Regime for foreign investors.
FOREIGN TRADE
AND CUSTOMS
those vehicles subject to excise tax, the applicable rate
varies between 8% and 16%.
3. Colombiahas a special import and export system
that allows temporary imports with total exemption of
import duties and taxes (tariff and VAT) of raw mate-
rials and inputs to produce goods destined for the
international market.
In addition, for the agricultural and services sectors, it
allows duty-free imports and VAT deferral for capital
goods and spare parts to produce goods or services
destined for the international market. It also offers an
import mechanism exempt from tariffs and VAT, to
replace raw materials and inputs that have been
imported paying these taxes and that have been
destined for final goods that were exported. In the
Colombian legal system, there is also the Special
Import and Export System for Capital Goods and Spare
Parts under Article 174 of Decree Law 444 of 1967,
under which it is possible to defer VAT. These
mechanisms, colloquially known as "Vallejo Plan",
provides conditions for exporters to be more
competitive.
4. The Colombian government has signed 20 trade
agreements covering more than 64 countries, of which 17
are in force. This expands the potential markets for compa-
nies based in Colombia.
5. To meet the needs of all companies established in
the country, Colombia has different customs import
regimes.
6. The country has developed a free trade zone regime
that allows companies that are stablished inside this area
to benefit from special tax, customs and foreign trade
regulations.
Colombia enjoys a strategic and privileged geographical
location that allows the country a better access to
international markets. Also, because of the multiple Trade
Agreements signed by Colombia, there are multiple tariff
preferences that guarantee the best conditions for the
commercialization of products in foreign markets. In
addition, Colombia has agile, efficient, and modern
customs procedures controlled by the National Tax and
Customs Directorate (DIAN).
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3
To consult the services and information of the VUCE you can access the following link: www.vuce.gov.co
1. Foreign trade procedures
In general, Colombia does not require special
authorizations prior to customs control for the
importation of goods. However, there are some
exceptions to this rule. Some particularly sensitive
goods, such as weapons, products that can be used
in the manufacture of narcotics, and used machinery
and equipment, among others, require a prior import
license obtained from the Import Committee of the
Ministry of Commerce, Industry and Tourism (MINCIT
in Spanish). The licensing process is carried out
electronically through the "Single Window for
Foreign Trade" (VUCE in Spanish) mechanism,
administered by the MINCIT.
On the other hand, to ensure compliance with
internal consumer protection standards, there are
certain goods whose importation must be subject to
approvals from some State agencies. This is the case
of food, vegetables, and electrical equipment. For
this purpose, once the requirements have been
fulfilled, a verification is also carried out
electronically through the VUCE procedure, where
the "Import Registration" form is filed so that the
system internally directs the request for obtaining the
approval from the competent entity. The estimated
time to complete this process is approximately 5
working days.
The VUCE3
mechanism was created in 2004 to
harmonize the requirements, procedures and
documents demanded by the entities that intervene in
import and export operations, thus reducing
response times and costs, and increasing the
competitiveness of Colombian companies. VUCE has
20 affiliated entities, 52,000 registered users, 4.1
million operations and, in addition to the procedures
mentioned above, the following can also be carried
out:
In the imports module: manage the administration
of import quotas (electric and hybrid vehicles, steel
wire rod, oils, among other goods).
Export module: Electronic processing of authoriza-
tions prior to export established by the competent
authorities for certain products. It also generates
authorizations for export quotas (raw and wet-blue
leather, panela, and unrefined sugar - WTO, sugar,
and sugar products - Trade Promotion Agreement
with the United States).
Registry of Producers of National Goods: The
Registry of Producers of National Goods is an
instrument of consultation and support available to
the MINCIT to issue concepts of existence or
non-existence of registered national production of
goods. This registration is granted for a period of
one (1) year and must be renewed one (1) month
prior to expiration.
Certificates of Existence of National
Production: Request for certifications of existence of
national production for machinery or equipment for
basic industries, transformation of raw materials and
environmental use.
Qualification and verification of the
incorporation of nationally produced material
in the assembly of motorbikes: Qualification of
national motorbike parts incorporated into
motorbikes assembled in the country. This
qualification is valid for one (1) year and will be
updated at the request of the interested party
whenever necessary.
Transformation and assembly regime: The
Foreign Trade Directorate of the Ministry of Trade,
Industry and Tourism grants, through an administrati-
ve act, authorizations, assignments, renewals, addi-
tions, changes of brand and termination of the autho-
rization of the transformation and assembly applica-
tions submitted by the auto-parts and motor vehicle
assembly companies.
Simultaneous Inspection System Module (SIIS):
Coordinates the scheduling of a simultaneous inspec-
tion for export containerized cargo at seaports,
which is carried out by the control entities (DIAN,
ICA, INVIMA and Anti-Narcotics Police).
2. Customs Generalities
Once the import goods are unloaded from the means
of transport, they may remain in warehouses
authorized for this purpose for maximum 1 month,
extendable up to 1 additional month. At the end of
this term without having obtained the release of the
cargo, or without the merchandise having been
reshipped, the legal abandonment will operate.
In addition, there are warehouses for specific and
authorized operations, such as:
- Private warehouses for transformation or assembly.
- Private warehouses for industrial processing.
- Private warehouses for international distribution.
- Private aeronautical warehouses.
- Transitory private warehouses.
- Warehouses for urgent shipments.
- Warehouses for on-board provisions used for
consumption and to take away.
- Free trade warehouses.
- International logistic distribution centers (CDLI in
Spanish), which replaced the public warehouses of
international logistic support.
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Particularly, the AEO benefits are:
The application for AEO recognition must be filed by
the foreign trade user with the DIAN and is granted if
the following conditions and requirements are met:
It is the authorization granted by the National Tax
and Customs Directorate (DIAN) to the importer,
exporter, customs agency, cargo agency, free trade
warehouses and land carriers that demonstrates their
commitment to the security of the entire international
supply chain. Also, it is a guarantee of their
compliance with the minimum-security conditions
established by the National Government ensuring
safe and reliable foreign trade operations. Both legal
entities and natural persons may obtain this
authorization.
In general, the AEO has the following benefits:
Is the person who signs and files a customs declaration
in his own name or on behalf of third parties.
3. Taxpayer
3.1 Authorized Economic Operator (AEO)
Existence and legal representation in the country
Track record in the export activity.
No sanctions enforceable due to situations affecting the
international logistics chain (2 previous years).
Favorable qualification in SAR. Motion for
reconsideration will be applicable against unfavorable
qualification.
Financial solvency.
Authorization, registration, authorization, return, license
or permit to perform their activity.
No sanctions enforceable due to infringement of zoo
sanitary and phytosanitary conditions or good practices
in hygienic, technical-locative and quality control
conditions and storage capacity (2 previous years).
Previous conditions per Category
Documentary demonstration and practice in 11
categories:
Risk Analysis and Administration
Business partners
Physical security
Information technology security
Physical access control
Personnel Security
Among others…
Minimum security requirements
Requirements
Time
reduction
in the
logistics
chain
Cash
Flow
Competitivenes
s and security
in the chain
Consolidated and
deferred payment
Fifty percent
reduction in the
value of rescue of
certain goods
Customs clearance
at the declarant’s
facilities
Not constituting
guarantees to
support the
fulfillment of
customs obligations
Non-submission of
early customs
declaration when
mandatory
Submission of the
Request for
Shipment
Authorization (RSA)
at the place of
shipment
Reshipment of
goods at the time of
customs intervention
in the previous and
simultaneous
control.
Tasks of
consolidation or
deconsolidation of
load, transportation
of load or customs
agency service
through enabled
warehouses.
Placing of goods to
the customs
warehousing
procedure, once
transit, multimodal
transit operation
(MTO) or combined
transportation has
ended
04

The authorization is valid indefinitely if the conditions
and requirements, based on which the authorization
was given, are met. Currently, the AEO status is
available for exporters, importers, customs agencies,
ports, docks, and port operators.
The import modalities are:
1. Ordinary
2. Franchised
3. For outward processing
4. Reimportation in the same state
5. In compliance with the guarantee
6. Temporary for re-export in the same state
7. For inward processing: of capital goods, under special
import-export systems, and for industrial processing
8. For transformation and/or assembly
9. Postal and Express Delivery
10. Urgent deliveries
11. Travelers
12. Samples with no commercial value
3.2 Customs control
In general, the customs regulations in force are
contained in Decree 1165 of 2019 and Resolution 46
of 2019 that regulated it, as amended by Resolution
39 of 2021.
3.3 Imports
This is the most common import modality, through which
the importer in Colombia receives the merchandise to
have it in free disposal once the compliance of all
customs obligations has been verified. The import
declaration is the document that proves the legal
introduction of merchandise into the national customs
territory.
3.3.1 Ordinary imports
(a) Temporary importation for re-exportation
in the same state
Importation of certain goods that must be re-exported in
the same state in which they entered the national customs
territory before the expiration of a specified term. This
means, without having undergone any modification,
except for the normal depreciation originated by their
use. This type of import implies the suspension or deferral
of the payment of import duties and taxes (tariff and VAT)
and, therefore, the merchandise is in restricted
disposition.
Temporary importation for re-exportation in the same
state may be of two (2) types:
3.3.2 Temporary imports
(i) Short - term
Applies to imported goods destined to meet specific
needs, such as: those goods intended to be exhibited at
exhibitions, fairs or cultural events, capital goods
mentioned in the Decree 1446 of 2022, and the parts
and spare parts necessary for its operation, among
others. The maximum term of the importation will be six
months, extendable for another three months. For the
duration of the temporary importation, no import duties
and taxes are payable.
(ii) Long term
Applies to the import of capital goods, accessories, parts,
and spare parts, which are in a list of subheadings
contained in Decree 1446 of 2022 and its amendments.
The maximum term for this import modality is five (5)
years. In this case, import duties and taxes are distributed
in equal semi-annual installments and are paid
semi-annually in arrears, considering the exchange rate
for customs purposes at the time of payment of each
installment.
(b) Temporary importation for inward
processing
The following are the temporary importation for inward
processing modalities contemplated in the Colombian
Customs Statute:
(i) Temporary importation for inward processing
of capital goods
Allows the suspension of duties and taxes payments on
the temporary importation of capital goods, their parts,
and spare parts, intended to be re-exported after having
undergone repair or conditioning, for a period of six (6)
months, extendable for the same period.
(ii) Temporary importationunderspecial
import-export systems (“Plan Vallejo”).
To promote the realization of foreign trade operations,
Colombia incorporated in its customs regime the so-called
special import-export program, also known as “Plan
Vallejo”. This program allows the import of goods such as
capital goods, raw materials, inputs, and spare parts with
total or partial exemption or suspension of import duties
and taxes. The granting of such benefits will be subject to
compliance with the export commitments of goods or final
services acquired by the holder of the special program.
The Plan Vallejo benefits are granted by:
• Direct operation, to the importer of raw materials or
inputs, capital goods, intermediate goods, or spare
parts, who effectively produces and exports the final
good, without the intervention of third parties, or
assumes by its own name the provision of the service
intended for export.
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• Indirect operation, the importer of raw materials or
inputs, capital goods, intermediate goods, or spare
parts, who does not directly produce and export the
good, or does not assume in its own name the
provision of the service intended for export.
Among the current modalities of the Vallejo Plan are the
following:
a) Vallejo Plan for raw materials and inputs
This modality allows receiving within the national customs
territory, with total suspension of import duties and taxes,
raw materials and inputs that will be used exclusively
and, in their totality, deducting residues and wastes, in
the production of goods destined to be exported in their
entirety within a determined period; or goods that,
without being destined directly to foreign markets, will be
used by third parties in the production of goods for
export.
b) Vallejo Plan for capital goods and spare
parts for the agricultural sector
This plan allows the import of capital goods and spare
parts with total exemption of tariffs and with deferral of
the VAT payment.
These capital goods must be destined for the installation,
expansion, or replacement of the respective productive
units used in the production process of export goods, or
for the provision of services linked to the production or
export of these goods. In the modality foreseen in article
173 literal c) of Decree Law 444 of 1967, only goods of
the agro-industrial sector may be produced.
c) Vallejo Plan for the export of services
Allows the temporary importation of capital goods and
their spare parts with total tariff suspension and deferral
of VAT payment, for the provision of exportable services.
Whoever accesses this program must export services for
a minimum value equivalent to 1.5 times the FOB value of
the imported capital goods and their spare parts, provide
a bank or insurance company guarantee equivalent to
20% of the FOB value of the authorized import quota,
ensuring the proper use of the capital goods and their
spare parts imported temporarily, and not to dispose of
them or use them for a purpose other than that
authorized, while the goods are in restricted disposition.
Usually, this modality is applicable to exports of services
rendered by companies whose main purpose consists of:
• Transmission, distribution, and commercialization of
electric energy services.
• Special design services added value in
telecommunications and software exports.
• Accommodation services.
• Human health.
• Transportation services (air, maritime, passenger or
rail transportation).
• Research and development.
• Consulting and management.
• Construction services and related engineering
services.
• Business Services (computer and related services,
research and development services, packaging
services, etc.).
• Tourism and travel-related services.
d) Vallejo junior or replacement plan
This modality grants the exporter of national goods the
right to replenish or replace, through a new import free of
import duties and taxes, an equal number of raw
materials or inputs used in the production of exported
goods, when the total import duties and taxes (tariff and
VAT) have been initially paid in full. This restocking fee
must be requested within twelve (12) months following the
shipment of the exported products.
It should be noted that through Decree 1371 of 2020, the
National Government approved the 'Vallejo Express
Plan', in which, the evaluation and approval time by the
Ministry of Commerce, Industry and Tourism is reduced
by 50% (from 30 days to 15 working days), but also, as
mentioned, the commitments in the programs of (i) raw
materials (ii) capital goods and spare parts and (iii)
services are substantially reduced, in order to further
promote the program and allow more companies to
access it.
However, Decree 379 of 2022 stablished that this
Express Plan would be in force until the 31st of December
2023. Currently, companies that had taken advantage of
the regular Vallejo Plan prior to the implementation of the
Express Plan will make an automatic transition to the
traditional mechanism. On the other hand, companies
that entered the program through the Express Plan must
start the process and request their entry to the regular
Vallejo Plan.
e) Temporary Importation of Goods on Lease
Capital goods subject to a rental or leasing contract may
be introduced into the national customs territory, with
deferred payment of import duties and/or taxes, when
they meet the following conditions: (i) the goods are
destined for re-export within an established period of
time, and (ii) they do not undergo any modification,
except for the normal depreciation arising from its use. It
should be noted that the merchandise imported under this
modality is not considered in free circulation.
The term of the temporary importation will be for rental or
lease contract term. This period may be extended as
agreed by the parties to the contract. Likewise, the
temporary import customs declaration must indicate the
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4
Artículo 2.2.3.7.1.1 del Decreto 1794 de 2020
term of permanence of the merchandise in the national
customs territory.
On the other hand, it is necessary to constitute a
guarantee for one hundred percent (100%) of the
liquidated import duties and taxes. The purpose of this
guarantee is to guarantee the payment of duties and
taxes, penalties, and interest because of the
non-compliance with the obligations and responsibilities
established by law.
In the import tax return the customs duties will be
liquidated, but they will be paid in equal semi-annual
installments for the term of permanence of the
merchandise in the national customs territory, at the
representative market rate in force now of its payment.
When the duration of the lease contract exceeds five (5)
years, with the last installment corresponding to this
period, the balance of customs duties not yet paid shall
be paid.
It is possible to sign financial leasing contracts related to
imported goods into the country under the long-term
temporary import modality, without generating the
termination of such import modality, nor the loss of the
benefits obtained with the same.
Colombia has developed mechanisms to deal with unfair
trade practices, such as the imposition of antidumping
duties and subsidy measures. The application of
safeguards is also permitted.
4.1. Imposition of antidumping duties
A product is considered dumped when it is introduced
into another country at a price below its normal value or
when its export price when exported from one country to
another is lower than the comparable price, in the
ordinary course of trade, of a like product destined for
consumption in the exporting country4
.
Injury and a causal link between the injury and the
dumped imports must be demonstrated. The imposition of
anti-dumping duties is intended to apply a customs duty
on imports of the product under investigation, to
reestablish the conditions of competition distorted by
dumping. This procedure is regulated by Decree 1794 of
2020.
4.2. Subsidy measures
It is considered that an import has been subsidized when
the production, transportation, or export of the imported
good or its raw materials and inputs, have received
4. Trade Defense Measures
5. Tariff preferences
directly or indirectly any aid, prize, stimulus or incentive
of a financial nature from the government of the country
of origin or export, from its public or mixed agencies and,
that with this, a benefit is granted. The above, without
prejudice to the provisions of the Agreement on Subsidies
and Countervailing Measures of the World Trade
Organization, contained in Law 170 of December 15,
1994.
Likewise, the use of multiple exchange rates in the country
of origin or export, as well as the existence of some form
of income or price support may be considered as a
subsidy when this grants a benefit. The imposition of
countervailing duties is intended to impose a customs duty
on imports, and to reestablish the conditions of
competition distorted by the subsidy.
4.3. Safeguards
Safeguards consist of a temporary limitation on imports.
These may take the form of a tariff or a quantitative
restriction and may be applied to prevent or remedy
serious injury or threat of serious injury to a branch of
domestic production, as well as to facilitate its adjustment
to the conditions of competition with the international
market. Such measures must be appropriate to facilitate
the economic adjustment of the industry in such a way
that economic and social benefits outweigh the costs
arising from the measure.
A safeguard is adopted when it has been determined that
imports of a certain product have increased in such
quantity and are being made under such conditions as to
cause or threaten to cause significant injury to the
domestic industry of like or directly competitive products.
On the other hand, in the International Trade
Agreements, special rules are negotiated to safeguard
the interests of domestic producers in their domestic
market, as well as in the export market, by means of the
establishment of safeguards and corrective duties for
unfair trade practices such as dumping and subsidies.
Colombia and the World Trade Organization
(WTO)
Colombia has been a member of the WTO since April
30, 1995, and a member of GATT since October 3,
1981. Therefore, has the obligation to guarantee the
transparency of its trade policies and the due application
of the WTO Agreements. Likewise, as a member of the
WTO, the Colombian Government is subject to periodic
reviews by the WTO to evaluate the country's trade
policies and practices.
The WTO Agreements contain special provisions for
developing countries, including longer terms for the
implementation and execution of the Agreements and
commitments acquired thereunder. Therefore, Colombia
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Colombia has been structuring a policy of open
economic integration, by virtue of which it has been able
to approach an increasing number of foreign markets.
Particularly in Latin America, this integration has taken
place within the framework of the Andean Community
(CAN), the Pacific Alliance and the Latin American
Integration Association (ALADI).
The various agreements signed by Colombia are
included in the table of Free Trade Agreements in chapter
one. Below is a summary of some of the most relevant
trade agreements:
(a) Andean Community (CAN)
One of the strategic economic integration schemes for
Colombia is the Andean Community (CAN). By virtue of
this agreement, Colombia has free circulation of goods
exempt from duties and the commitment not to establish
trade restrictions. Since 1993, this regional integration
scheme has been a free trade zone with Bolivia and
Ecuador, and since 2006 with Peru.
The Andean Community is currently undergoing a
process of reengineering or revision of the institutional
framework of the Andean Integration System SAI, to
strengthen and renew the dynamism of the integration
process, adapting it to international challenges.
(b) Colombia-Mexico free trade agreement
It was born as the Treaty of the Group of the Three
(G3-FTA), integrated by Mexico, Colombia, and
Venezuela, signed on June 13, 1994, entered into force
on January 1, 1995.
In May 2006, Venezuela formally denounced the
Agreement, so as of November 19, 2006, only
Colombia and Mexico participate in the FTA, now G-2.
In August 2009, Colombia and Mexico finalized the
work to adapt the FTA and signed five (5) decisions
contained in an amending protocol, referring to market
access, adjustments to the rules of origin, the Regional
Input Committee, additional powers to the Administrative
Commission and the change of name of the treaty. This
deepening of the Agreement has been in force since
August 2, 2011, allowing 97% of the goods negotiated
with that country to be subject to a 0% tariff. The
remaining percentage corresponds to goods from the
agricultural sector that were excluded from this FTA, some
of which were recently negotiated within the framework
of the Pacific Alliance.
6. Trade Agreements
(c) Economic Complementation Agreement
CAN – Mercosur
- Economic Complementation Agreement No. 59 signed
between the Governments of the Republic of Argentina,
the Federative Republic of Brazil, the Republic of
Paraguay and the Oriental Republic of Uruguay, member
states of Mercosur, and the Governments of the Republic
of Colombia, the Republic of Ecuador and the Bolivarian
Republic of Venezuela, member countries of the Andean
Community.
The Economic Complementation Agreement No. 59
(ACE 59) was signed on 18 October 2004 and entered
into force in 2005. This Agreement created a Free Trade
Area through a Trade Liberalization Program, which is
applied by means of bilateral, progressive, and
automatic deductions for products originating and
coming from the territories of the Signatory Parties (the
Member Countries of the CAN and the Mercosur
Member States).
ACE 59 considers the asymmetry foreseen in the Latin
American Integration Association (ALADI), which is made
effective in the form of differentiated periods of relief, as
well as in the rules of origin established in accordance
with the existing differences in the levels of economic
development of the signatory parties. A large part of
trade with Mercosur countries is now tariff-free.
In addition, this Agreement includes chapters on rules of
origin, safeguards, dispute settlement, technical
regulations, sanitary and phytosanitary measures, as well
as the chapter on extraordinary measures that operates
as an agricultural safeguard, and a deepening protocol
on services was negotiated.
- Economic Complementation Agreement No. 72 signed
between the Governments of the Republic of Argentina,
the Federative Republic of Brazil, the Republic of
Paraguay and the Oriental Republic of Uruguay,
Mercosur States Parties, and the Government of the
Republic of Colombia.
The Economic Complementation Agreement No. 72
(ACE 72) was signed on 21 July 2017. Regarding its
entry into force, it should be noted that ACE 72 between
Colombia and Argentina, and between Colombia and
Brazil, are in force since 20 December 2017. For its part,
ACE 72 between Colombia and Uruguay entered into
force on 11 June 2018 and with Paraguay on 29 January
2019.
ACE 72 is an economic complementation agreement that
pursues the same objectives and scope as ACE-59 and,
like the latter, was also signed within the framework of the
1980 Treaty of Montevideo. Since the signatory parties
maintain in force the tariff preferences granted in ACE
has had the possibility of designing compliance
schedules that adjust to the country's reality,
guaranteeing the achievement of the WTO's objectives
in terms of increased trade opportunities and growth of
trade capacity.
08

Under the Agreement, 91.9% of trade in industrial goods
originating in Canada is zero-tariff, as are 98.8% of
industrial products originating in Colombia that are
exported to this country. The agreement also includes
provisions on agricultural trade, government
procurement, investment, and services liberalization,
including a chapter on telecommunications and another
on financial services, among other issues.
(g) Free Trade Agreement Colombia-Northern
Triangle
The Free Trade Agreement between the Republic of
Colombia and the Republics of El Salvador, Guatemala,
and Honduras (Northern Triangle of Central America)
was signed in Medellín on 9 August 2007 and entered
into force with Guatemala on 12 November 2009, with
El Salvador on 1 February 2010 and with Honduras on
27 March 2010.
This agreement allows Colombia to have a regulatory
framework for a market of about twenty-nine (29) million
inhabitants in terms of goods and services. In addition, it
regulates many other critical issues such as investment,
public procurement, technical standards, and sanitary
and phytosanitary measures, among others.
The objectives of the FTA include eliminating barriers to
trade and facilitating the cross-border movement of goods
within the free trade area; promoting conditions of fair
competition; protecting, promoting, and increasing
investment in each of the Parties, among others.
Considering the sensitivities of each of the countries'
economies, and because of the negotiated tariff reduction
process (between three and twenty years), free access
was granted from the outset for 53% of the tariff universe
and fixed preferences were granted to 1%.
(h) Partial Scope Agreement with Venezuela
Colombia signed the Partial Scope Agreement with
Venezuela on 28 November 2011 and its Annexes on
15 April 2012. The Agreement entered into force on 19
October 2012.
Within the provisions of the Partial Scope Agreement, the
following are highlighted:
• The agreement defines the preferential tariff treatment
based on the historical trade present between 2006
and 2010.
• Colombia granted tariff preferences for
approximately 4,921 lines, while Venezuela did so
for 4,713. While 100% preferences were negotiated
for some products, sensitive products were also
defined in both countries, which enjoy a margin of
preference between 40% and 80%.
59, the conditions of access for goods originating in the
parties to the agreement were not renegotiated. In ECA
72, industrial products such as textiles, clothing,
metal-mechanics and vehicles were incorporated.
(d) Colombia-Chile Free Trade Agreement
The Free Trade Agreement (FTA) is a deepening of the
Economic Complementation Agreement ACE 24, which
seeks to offer commercial advantages to Colombian
economic agents, by establishing clear and predictable
rules for the development of trade in goods and services,
as well as the promotion and protection of investments,
adequate international cooperation and the creation of
new and better business and employment opportunities.
The FTA was signed on 27 November 2006 and entered
into force on 8 May 2009.
The Agreement is based on the trade relief negotiated in
ACE 24, signed on 6 December 1993, which entered
into force on 1 January 1994. The relief was conducted
under programs negotiated in 5 schedules of relief. The
long-term programs ended on 31 December 2011.
Finally, thanks to this agreement, 100% of the tariff
universe was removed, except for products subject to the
price band mechanism, on which the variable component
tariff continues to apply, including meat products, dairy
products, rice, oilseeds, and sugar. This means that the
substantial part of trade between the Parties is liberalized
under the framework of ECA 24 and its additional
protocols.
(e) Colombia-EFTA Free Trade Agreement
European Free Trade Association
All industrial products originating in Colombia exported
within the framework of this treaty to some of the
European Free Trade Association - EFTA countries
(Switzerland, Liechtenstein, Norway, and Iceland), have
zero tariffs. Similarly, 85.7% of imports into Colombia of
products originating in some of these countries have been
duty-free since 1 July 2011. The treaty also covers issues
on agricultural trade, public procurement, intellectual
property, among others.
Switzerland ratified the treaty on 29 October and
Liechtenstein on 26 November 2009. The treaty entered
into force with Norway on 1 September 2014 and with
Iceland on 1 October 2014.
(f) Colombia-Canada Free Trade Agreement
The Agreement comprises three separate, interrelated
agreements named: the Free Trade Agreement, the
Agreement on Labor Cooperation and the Agreement on
Human Rights and Environment. This Agreement
represents an advantage by allowing Colombia access to
a market of thirty-three million high-income consumers.
09

• The preferences agreed will apply to originating,
new and unused products.
• There are specific provisions for the application of
mechanisms for the import of agricultural products
identified as sensitive products, among other issues.
(i) Caribbean Community (CARICOM)
The Partial Scope Agreement (PSA) Nº 31 on Trade and
Economic and Technical Cooperation was signed in the
framework of Article 25 of LAIA in Cartagena de Indias
on 24 July 1994. In development of this Agreement, on
21 May 1998 in Georgetown (Guyana) a First Protocol
was signed which modifies the rules of origin and
includes for the first-time products with tariff preferences
in favor of Colombia immediately as of 1 June 1998, and
gradually (25% each year) starting the first 25% as of 1
January 1999.
The CARICOM member countries participating as
signatories to the FPA are Trinidad and Tobago,
Jamaica, Barbados, Guyana, Antigua and Barbuda,
Belize, Dominica, Grenada, Montserrat, St. Kitts and
Nevis, St. Lucia, St. Vincent, and the Grenadines. The
most developed countries signatory to the agreement
(Jamaica, Trinidad and Tobago, Barbados, and Guyana)
put into effect the relief commitments for Colombia as of
1 June 1998 and 1 January 1999.
Colombia grants tariff preferences to these countries on
1,128 product subheadings in the Common Tariff
Nomenclature of the Andean Community (Nandina) and
receives tariff reductions on 1,074 from Trinidad and
Tobago, Jamaica, Barbados, and Guyana alone. At
present, preferences for negotiated products are 100%.
(j) Economic Complementarity Agreement with
Cuba
Trade relations between Colombia and Cuba are
governed by the Economic Complementation Agreement
No. 49 signed in 2000, under the ALADI framework,
which entered into force on 10 July 2001. Relations with
Cuba were deepened through the signing of two (2)
protocols, the first allowed for the deepening of existing
preferences and the second incorporated issues in
dispute settlement, sanitary and phytosanitary standards,
technical standards and conformity assessment, rules of
origin, market access (incorporation of new products and
expansion of existing preferences).
The Agreement covers about 1,138 products with
preferences in favor of Colombia and 813 in favor of
Cuba. The Agreement is based on fixed preferences
granted by the Parties between 40% and 100% over
each country's MFN tariff to third parties.
(k) Partial Scope Agreement with Nicaragua
It takes place within the framework of Article 25 of the
1980 Montevideo Treaty, which allows the signing of
Partial Scope Agreements between LAIA member
countries with other Latin American countries and
integration areas, as is the case of Nicaragua. The
Agreement aims to strengthen trade exchange through
the granting of tariff and non-tariff preferences.
The objective is to strengthen trade exchange through the
granting of tariff and non-tariff preferences granted by
Colombia to Nicaragua, with the anticipation that in the
future Nicaragua will be able, when conditions permit, to
grant preferences to Colombia. At present, preferences
are few (25 sub-items) in favor of Nicaragua.
(l) Trade Promotion Agreement Colombia -
United States of America
Approximately 99% of Colombia's exportable supply
enters the US market duty-free under the Agreement with
the world's largest economy and Colombia's main
trading partner. In turn, more than 80% of US exports of
consumer and industrial products enter Colombia duty
free under this TPA. It is worth mentioning that for those
products considered sensitive, such as products related to
the agricultural sector, protection mechanisms were
established, such as automatic safeguards, high base
tariffs, long tariff elimination periods, tariff quotas and
grace periods.
The TPA also includes chapters on investment, financial
services, telecommunications, government procurement
and e-commerce, among others.
The TPA has fostered growth in the automotive,
medicines, construction materials, fresh and processed
food, and sugar and sugar derivatives sectors.
Currently, the Colombian government remains committed
to the implementation of obligations related to trade
facilitation, intellectual property, and services. Similarly,
efforts have been made to eliminate non-tariff barriers
(sanitary and phytosanitary barriers for agricultural
products) so that Colombian products and services have
real access to the US market.
(m) Colombia and the European Union Free
Trade Agreement
The Constitutional Court declared this Trade Agreement
constitutional, thus entering into force. The Agreement
allowed the immediate tariff-free entry of approximately
99.9% of Colombian industrial goods exported to the
European Union, such as fishery products, chemicals,
plastics and their manufactures, leather, textiles and
clothing, footwear, among others.
10

The European Union is a strategic trade partner for
Colombia, with a market of more than 507 million
consumers, whose consumption capacity is
approximately USD 34 thousand.
(n) Pacific Alliance
On 28 April 2011, the presidents of Chile, Colombia,
Mexico, and Peru launched an initiative to establish the
Pacific Alliance. The main purpose of this bloc is to
progressively move towards the free movement of goods,
services, capital, and people and thus contribute to the
development of the countries and the improvement of the
quality of life of citizens. The legal instrument that
formally constitutes this regional integration mechanism is
the Framework Agreement, which entered into force in
July 2015, and its trade protocol, which entered into
force on 1 May 2016.
The Additional Trade Protocol contains nineteen
chapters, several of which were already regulated
bilaterally between the countries, with varying degrees of
depth. This Agreement seeks to extend and take greater
advantage of the free trade already existing between the
members and modernize the existing bilateral
agreements, introducing some contemporary issues in
which Colombia has an interest.
Considering the advanced state of bilateral relations in
terms of tariff relief, the greatest achievement of the
Pacific Alliance is that it introduces a fundamental
element for competing in a world of globalized
production: the possibility of cumulating the origin of
goods among the four countries. The Alliance allows
intermediate goods and inputs from any Alliance country
to be incorporated into the final good for export to any of
the member countries. This is a true expanded market that
responds to modern production schemes and facilitates
Colombia's insertion into regional and global value
chains.
Beyond progress in the trade area, the Pacific Alliance
should be seen as a comprehensive strategy. Economic
and trade commitments are complemented by the
activities and actions currently underway in areas such as
support for SMEs, promotion of innovation, cooperation,
education, facilitation of the movement of people,
reduction of regulatory barriers, joint promotion of
exports, investment, and tourism, among others, which
contribute to a better use of trade agreements.
This process of deep integration has aroused great
interest in the international community, which is
evidenced by the fact that it currently has 61 Observer
States, with whom concrete work actions are being
developed in areas directly related to the objectives and
pillars of the alliance: free movement of goods, services,
capital and people, as well as in areas of cooperation
such as infrastructure, environment, education and small
and medium-sized enterprises. These initiatives respond
to the shared interest of positioning the Pacific Alliance as
a platform for projection to the world, with special
emphasis on the Asia Pacific.
Pacific Alliance members are negotiating a Free Trade
Agreement with their potential "associate members"
(Australia, Canada, New Zealand, and Singapore). In
the case of Singapore, the FTA between Singapore, and
the Pacific Alliance, signed on 26 January 2022, made
Singapore the first Partner State of the Alliance.
(o) Free Trade Agreement Colombia - Republic
of Korea
The Free Trade Agreement between the Republic of
Colombia and the Republic of Korea signed in February
2013, aims to find alternative export markets, new
investment opportunities and strengthen the bilateral
relationship between the two countries, which highlights
the signing of several memoranda of understanding, one
of industrial cooperation, energy and information
technology and telecommunications.
The Treaty will allow Colombia immediate duty-free entry
into Korea of 98% of the tariff lines that classify industrial
goods, and it is expected that by 2027 imports of
non-agricultural goods from that country will be subject to
a 0% tariff.
For sensitive sectors, such as vehicles and white goods,
and in accordance with requests from the private sector,
long tariff elimination periods were established to allow
room for the necessary adjustments.
This agreement entered into force on 15 July 2016.
(p) Free Trade Agreement Colombia - Costa Rica
This Agreement, which entered into force on the 1st of
August 2016, reflects the Government's public policy
objective to diversify our export destinations. Costa Rica
is relevant for Colombian foreign trade due to the
economic importance and proximity of Costa Rica and
the commercial and cultural ties with our country.
Negotiations with Costa Rica open trade opportunities for
the export of Colombian industrial and agro-industrial
products.
(q) Free Trade Agreement Colombia - Israel
This is the first negotiation with a Middle Eastern country,
with which Colombia seeks to increase trade and
investment flows, boost bilateral economic cooperation,
the removal of non-tariff barriers and the promotion of
diplomatic relations. The FTA with Israel will allow
11

preferential access to this market and a consequent
increase in trade because of reduced transaction costs
and improved customs procedures. The FTA with Israel
will also promote the expansion of bilateral investment
flows and the creation of new businesses. The agreement
between Colombia and Israel entered into force on 11
August 2020.
(r) Colombia-Panama Free Trade Agreement
With this negotiation, Colombia seeks to strengthen its
trade ties with one of its natural partners because it is a
neighboring country and because of the complementarity
of its economies. Panama's economic growth has been
quite dynamic in recent years, and it is consolidating as
a business center in the region, a circumstance that offers
interesting opportunities for Colombian industry. This
treaty, signed on 20 September 2013 is currently in the
process of internal approval for its ratification and
subsequent entry into force.
(s) Free Trade Agreement Colombia - United
Kingdom
Considering the withdrawal of the United Kingdom from
the European bloc, the Government of Colombia,
together with Peru and Ecuador, advanced the
negotiation with the United Kingdom to maintain the
same tariff preferences that are contained in the FTA in
force with the European Union. After completing the
internal procedures, the Trade Agreement signed by
Colombia and the United Kingdom came into force on
28 June 2022. The tariff commitments acquired by the
two countries are developed through Decree 894 of 31
May 2022.
(t) Colombia - Singapore Free Trade Agreement
Negotiations between the Pacific Alliance and Singapore
concluded in 2021. This agreement is part of the Pacific
Alliance's initiative to reach out to the Asia-Pacific region
to foster economic integration. On the signature of the
FTA between Singapore and the Pacific Alliance made
Singapore the first Partner State of the Alliance.
Their purpose is the marketing and sale of Colombian
products abroad, acquired in the domestic market or
manufactured by their member producers. The most relevant
benefits of the International Marketing Companies are:
• VAT exemption on purchases of movable tangible goods,
if they are effectively exported directly within six (6)
months following the acquisition in Colombia and the
issuance of the certificate to the supplier.
• Likewise, intermediate production services rendered to
such companies shall be exempt from VAT companies
shall be exempt from VAT, when the final good is
effectively exported.
7. International trading companies
• Purchases of exported goods are not subject to
withholding tax.
A Free Trade Zone is the geographic area delimited within
the national territory, where industrial activities of goods and
services, or commercial activities are developed, under
special tax, customs, and foreign trade regulations. Goods
entering these zones are outside the national customs territory
for the purposes of import taxes. Among the objectives of this
regime are the generation of formal and direct employment,
development that promotes competitiveness, and the
generation of new investments in real fixed assets, as well as
the creation of economies of scale.
The main benefits of operating under the free trade zone
regime are:
• - From 2023, a "mixed taxation" is applied for free zone
industrial users, distinguishing two scenarios for the
application of the 20% rate and the general corporate
income rate (35%). The 20% rate is applicable with
respect to income obtained from the export of goods and
services, and the general income rate (35%) is
applicable with respect to income other than that
obtained from the export of goods and services.
• Non-payment of customs duties and import taxes (tariff
and VAT) on the introduction of goods from the rest of the
world to the free zone, or their deferral until they enter the
national customs territory.
• VAT exemption on sales made from the national customs
territory to industrial users of the free zone or between
them if it is for the development of the industrial user's
corporate purpose. This exemption is not applicable to
foodstuffs, toiletries, among other goods, which are not
related to the activity of goods or services authorized to
the industrial user.
• Exports from free trade zones benefit from the Free Trade
Agreements signed by Colombia.
Free zone users must comply with the applicable
commitments to generate employment and investment and
must act under the principle of exclusivity, according to which
they may only conduct the income-generating activity in the
area defined as a free zone.
This was especially evident with the modifications brought
about by the tax reform, Law 2277 of 2022, with which it is
intended that users who conduct activities in the free trade
zone, and have a reduced income rate, effectively conduct
export activities.
It is also important to note that Law 2277 of 2022, which was
partially regulated by Decree 0047 of 2024, sets a condition
for the application of the 20% rate. Between 2023 and
2024, industrial users of free zones must agree on an
Internationalization and Annual Sales Plan that establishes
8. Free Trade zone regime
12

9. Exports
the maximum objectives of net income from operations of any
nature in national customs territory and other income
obtained in the development of activities other than the
activity for which they were authorized, recognized or
qualified during the applicable taxable year.
Free zones can be developed under three schemes, namely:
(i) as an industrial park (permanent free zones) in which
several companies operate in the same physical space; (ii) as
a single company located anywhere in the country (special
permanent free zones); or (iii) as fairs, exhibitions,
congresses and seminars of national or international
importance for the economy and/or international trade
(temporary free zones).
During 2021, the National Government issued Decree 278,
by which, among others, it (i) sought to simplify declaration
and extension procedures; (ii) reduced the value of
investment and employment generation commitments for new
free zones; (iii) recognized the possibility that intangible
assets, formed or generated by the users, could count
towards the fulfilment of the new investment commitments; (iv)
admitted that a percentage of the employees of industrial
service users could work outside the free trade zone remotely.
These are foreign trade operations consisting of the exit of
goods from the national customs territory to the rest of the
world.
The processing of an export from Colombia begins with the
presentation and acceptance of a request for shipping
authorization, through the procedures set out in the customs
regulations.
In general, exports are not subject to duties or taxes and
benefit from certain mechanisms, such as, among others:
• Special import and export systems (Plan Vallejo).
• International trading companies (ICs), which are compa-
nies set up specifically to purchase national products to
be exported, with the sale to these ICs receiving all the
benefits as if it were an export.
• Special export programs (SEPs).
• Tax refund certificate -CERT-. The Government has the
power to raise the CERT percentage, its level today is
zero, but depending on economic circumstances the
Government can raise it.
Exports can be definitive, temporary for outward processing,
temporary for re-import in the same state or re-export:
9.1. Definitive export
This is the exit of goods from the national customs territory to
another country, to a free zone or to free warehouses.
9.2. Temporary export for outward
processing
Allows the temporary exit of national goods or goods in free
circulation, from the national customs territory, to be subject
to transformation, processing, or repair abroad or in a free
zone, and must be re-imported within the period indicated in
the corresponding export declaration.
9.3. Temporary export for re-import in the
same state
Allows the temporary exit of national goods or goods in free
circulation from the national customs territory, to serve a
specific purpose abroad, within a specific period, during
which they must be re-imported without having undergone
any modification, except for normal deterioration caused by
the use made of them.
9.4. Re-export
Allows the definitive exit from the national customs territory of
goods that were subject to a temporary import regime or to
the transformation or assembly regime.
13

STANDART SUBJECT
Regulatory Framework
Decree 152 of 1998
Decree 1165 of 2019 and its amendments
Decree 4149 of 2004
Resolution 46 of 2019 and amendments (Partial).
Law 1004 of 2005
Decree 1074 of 2015
Decree 1794 of 2020
Decree 3568 of 2011
Decree 1625 of 2016
Decree 925 of 2013
Decree 1289 of 2015
Decree 624 of 1989 and amendments; Decree
1165 of 2019 and amendments thereto
Establishing the procedures and criteria for the adoption of
general safeguard measures, transitional safeguard measures for
products covered by the agreement on textiles and clothing, and
special safeguard measures for agricultural products
Streamlining foreign trade formalities and procedures and
creating the Foreign Trade Single Window
Contains the essential elements, requirements, and procedures
for accessing the free trade zone regime
Whereby a single Regulatory Decree of the Trade, Industry and
Tourism Sector is issued
Whereby it establishes a zero percent (0%) tariff levy for the
importation of a series of products Creation of the Authorized
Economic Operator
Establishing provisions related to applications for registration
and import licenses
By which the structure of the Ministry of Commerce, Industry and
Tourism is partially modified
Anti-dumping duties Bilateral Safeguard International Agreements
Creation of the Authorized Economic Operator. Anti-dumping
duties
Customs Statute Regulations
Customs Statute. Special Safeguard Procedure WTO bound level
Tax statute. Customs Statute
14

* This Guide is based on the regulations in force at the date of its publication.
STANDART SUBJECT
Decree 285 of 2020
Decree 1881 of 2021,
Decree 285 of 2020, Decree 809 of 2023
Decree 1371 of 2020 and Decree 379 of 2022
Decree 2147 of 2016, Decree 659 of 2018 and
its amendments (including Decree 278, 2021),
Decree 1881 of 2021, Decree 0047 of 2024
Decree 1371 of 2020 and Decree 379 of 2022,
Decree 2147 of 2016 and Decree 659 of 2018
and its amendments (including Decree 278, 2021)
Provisions relating to the Special Import and Export Systems -
Plan Vallejo
Free Trade Zone Regime Customs Tariffs
Vallejo Express Plan
Plan Vallejo Express Free Trade Zone Regime
Customs Tariff. Provisions relating to the Special Import and
Export Systems - Plan Vallejo
Regulatory Framework
15

16
Address:
Phone:
Web page:
Calle 92 #11- 51 Piso 4, Bogotá Bogotá, D.C. Colombia
+57 (601) 326 6999
https:/
/www.garrigues.com

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