INFORMATION ON IMPLEMENTATION AND ADMINISTRATION
OF THE AGREEMENT ON CUSTOMS VALUATION

CHECK-LIST OF ISSUES

Colombia

The following communication, dated 26 August 2014, is being circulated at the request of the delegation of Colombia.

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1.      Questions concerning Article 1:

(a)    Sales between related persons:

(i)     Are sales between related persons subject to special provisions?

Since Colombia is a member of the Andean Community, it applies the regulatory provisions in Articles 14, 15, and 16 of the Community Regulation implementing Decision No. 571 on Customs Valuation of Imported Goods. This Regulation was adopted pursuant to Andean Community General Secretariat Resolution No. 1684 of 23 May 2014.

(ii)    Is the fact of intercompany prices prima facie considered as grounds for regarding the respective prices as being influenced?

In the case of related enterprises, this is in principle considered to be a risk factor warranting in-depth investigation as to whether there are good grounds for doubt.

(iii)   What is the provision for giving the communication of the aforementioned grounds in writing if the importer so requests? (Article 1.2(a))

Article 15 of the Community Regulation adopted by Andean Community General Secretariat Resolution No. 1684 and Article 178 of National Customs and Excise Directorate (DIAN) Resolution No. 4240/2000 ("Influence of the relationship on the price paid or payable").

(iv)   How has Article 1.2(b) been implemented?

Article 16 of the Community Regulation annexed to Andean Community General Secretariat Resolution No. 1684 and Articles 179 and 180 of DIAN Resolution No. 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 practical arrangements concerning the valuation of lost or damaged goods?

Yes, Article 7 of Andean Community General Secretariat Resolution No. 1456 and Article 205 of DIAN Resolution No. 4240/2000 regulating spoiled, damaged or deteriorated goods.

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?

The last paragraph of Andean Community Decision No. 571 on Customs Valuation of Imported Goods provides for reversal of the order of application of Articles 5 and 6 of the Agreement, if the importer so requests and the customs administration so agrees. 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?

Article 5 of Andean Community Decision No. 571 on Customs Valuation of Imported Goods provides for the application of Article 5.2, whether or not the importer so requests.

4.      How has Article 6.2 been implemented?

Article 47 of the Community Regulation adopted by Andean Community General Secretariat Resolution No. 1684 and Article 191 of DIAN Resolution No. 4240/2000 deal with application of the computed method. This Article has been rarely applied.

5.      Questions concerning Article 7:

(a)    What provisions have been made for making value determinations pursuant to Article 7?

Articles 48 and 49 of the Community Regulation adopted by Andean Community General Secretariat Resolution No. 1684, Andean Community Resolution No. 1456 on Special Customs Valuation Cases and Articles 192 to 217 of DIAN Resolution No. 4240 provide clarification for the purposes of applying the fallback method.

(b)    What is the provision for informing the importer of the customs value determined under Article 7?

Chapter XIV, Section II, of Decree No. 2685/1999 and Title XIII, Chapter III, of DIAN Resolution No. 4240.

(c)    Are the prohibitions found in Article 7.2 delineated?

Yes, see Article 49 of Andean Community Resolution No. 1684 and Article 193 of DIAN Resolution No. 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?

Article 6 of Andean Community Decision No. 571 incorporates all the elements set forth in Article 8.2 of the Agreement.

According to Article 182 of DIAN Resolution No. 4240, the costs referred to in Article 8.2 of the Agreement include the carriage, handling, adaptation for export and delivery of the goods as far as the port or point of embarkation, freight costs from the first point of embarkation to the place of import into Colombia, and insurance for the transport of the goods.

In accordance with the above, Colombia applies c.i.f. prices, adding the elements listed in Article 8.2 of the Agreement where necessary.

7.      Where is the rate of exchange published, as required by Article 9.1?

The rate of exchange is published by the Central Bank (Banco de La República) and can be viewed at: http://www.dian.gov.co/dian/15servicios.nsf/tasadecambio?openview.

8.      What steps have been taken to ensure confidentiality, as required by Article 10?

According to Article 63 of the Community Regulation adopted by Andean Community General Secretariat Resolution No. 1684 and Article 258 of Decree No. 2685/1999, when the information supplied for the purposes of customs valuation is of a confidential nature, it must not be disclosed by the customs authorities without the express authorization of the person 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 reconsideration, 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 at: http://www.imprenta.gov.co/portal/page/portal/IMPRENTA/Productos/Diario_Oficial.

(ii)    the regulations concerning the application of the Agreement;

Published in the Official Journal at: http://www.imprenta.gov.co/portal/page/portal/IMPRENTA/Productos/Diario_Oficial.

(iii)   the judicial decision;

Published in the Gazette of the Constitutional Court.

and administrative rulings of general application relating to the Agreement;

Published in the Official Journal at: http://www.imprenta.gov.co/portal/page/portal/IMPRENTA/Productos/Diario_Oficial.

(iv)   general or specific laws being referred to in the rules of implementation or application;

Published in the Official Journal at: http://www.imprenta.gov.co/portal/page/portal/IMPRENTA/Productos/Diario_Oficial.

(b)    Is the publication of further rules anticipated? Which topics would they cover?

A national decree adopting a new customs regulation is due to be issued shortly. It will include a chapter on customs valuation, which will subsequently be regulated by a DIAN resolution. These provisions will be consistent with the WTO Agreement on Customs Valuation and the Andean Community rules.

11.    Questions concerning Article 13:

(a)    How is the obligation of Article 13 (last sentence) being dealt with in the respective legislation?

Article 62 of the Community Regulation adopted by Andean Community General Secretariat Resolution No. 1684, Article 128.5 of Decree No. 2685/1999 and Article 172 of DIAN Resolution No. 4240/2000 afford the importer the possibility of posting a guarantee when the customs authorities have any doubts 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 contain a provision requiring customs authorities to give an explanation in writing as to how the customs value was determined?

Article 509 of Decree No. 2685/1999 establishes the terms and conditions for bringing special charges against the customs authorities within a period 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 application of a customs valuation method, which, in its turn, must be identified in the court order.

(b)    Are there any further regulations concerning an above-mentioned request?

Yes: Title XIII, Chapter III, of DIAN Resolution No. 4240/2000.

13.    How have the Interpretative Notes of the Agreement been included?

Under Article 2 of Andean Community Decision No. 571, the member countries are required to value goods for customs purposes pursuant to Articles 1 to 7 of the WTO Agreement on Customs Valuation and its respective Interpretative Notes. Likewise, Article 4 provides for application of the General Note in Annex I to the Agreement.

14.    How have the provisions of the Decision on the Treatment of Interest Charges in the Customs Value of Imported Goods been implemented?

Article 22 of Andean Community Decision No. 571 stipulates that the instruments of the Committee on Customs Valuation and the Technical Committee on Customs Valuation are to be taken into account for the purposes of interpretation and application of the valuation rules laid down in the Agreement. Article 184 of DIAN Resolution No. 4240 stipulates that the customs value does 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 the Decision on the valuation of carrier media bearing software and the valuation of digital products is governed by Articles 214 and 214-1 of DIAN Resolution No. 4240/2000.

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