IMPORTING

BASIC TERMS

• Imports: goods and services flowing into a country

• Importing: the purchase of goods and services by a firm based in one country from sellers that reside in a different country – results in payments to the sellers – affords less control over the production

function

REASONS TO IMPORT• Raw material shortage. • Equipment and machinery shortages. • Cost reduction • Quality • Price

IMPORT STEPS1. Market study 2. Product identification 3. Import registration 4. Approvals 5. Transport contracting 6. Nationalization 7. Import payment

CUSTOM CODE

Chapter63 - Los demás artículos textiles

confeccionados; juegos, prendería y trapos.

Custom Code 63.02 - ropa de cama, mesa, tocador o cocina.

Subcustom Code 63.02.10 - Ropa de cama, de punto.

Tariff Position 63.02.10.10.00 - De fibras sintéticas o artificiales.

MARKET STUDY Product - Market

IMPORT REGISTRATION

($30.000)

APPROVALS (Respective

entities)

PAYMENT OF THE IMPORT (letter of credit, bank transfer, cheque,

cobranza, letra de cambio)

NATIONALIZATION OF THE MERCHANDISE AND

PAYMENT OF TAX DUTIES (*)

IMPORT > 1000 USD

NO

IMPORTER

YES

CUSTOMS AGENT

If the import value is above USD 5000, a Declaración Andina de Valor must be shown to the customs administration.

(*)

THE IMPORT PROCESS

TRANSPORT

Transportation Mean Arrival Notifying to National Custom Territory

Cargo Entry Manifest Presentation

Downloading Of Merchandise

Moving to Certified Warehouse DIM Presentation and

acceptance

Custom Duties Payment

Criterio de Selectividad:

Release (Levante)

Moving goods to final destination

•Automatic Release •Physical Inspection •Documental Inspection

SPECIFIC PROCEDURE

IMPORTING PROCESS IN COLOMBIA

TRANSPORTER OR CARGO AGENT DECLARER NATIONAL CUSTOM

Start

Arrival of the merchandise to the

NCT

Unloading of the merchandise

Inconsistencies

YesMoved to authorized

deposit

Yes

Yes

Yes

Yes

Yes

Notification of arrival

Notify custom authority

Justify inconsistencies

Direct unloading

Present declaration of

Accepted

Payment of tributes

Criterion of selectivity

Inspection

Satisfactory

Corrected

Automatic release

Release

Seize and confiscation

END

IMPORT REGIMESFree: No special requirements by the custom administration, just registry and permissions.

IMPORT REGIMESPrevious license: Chemicals for narcotics, weapons, ammunition, explosives, damaged goods, used goods, refurbished goods, tax exempted goods, official entities imports (Ecopetrol)

IMPORT REGIMESForbidden: Chemical, nuclear and biological weapons. Nuclear or toxic waste, Aldrin, Heptaclor, Dieldrine, Confeclor and Lindano. Military toys and military equipment (indumil)

IMPORT MODES

1. AVERAGE IMPORTMerchandise coming from abroad. National Custom Territory Indefinite Staying Payment of Duties Free Disposal of Merchandise Deadline to declare 15 days in an anticipated mode 2 months regularly

2. FRANCHISE IMPORTImport that because of a treaty, agreement or law enjoys the benefits of a total or partial exemption of taxes. Restricted availability of the merchandise.

– Partial or Total Custom Duties exemption (PAEZ & QUIMBAYA LAW 0% - 0% Tariff+VAT 255/92 & 2148/91 – Tariff+0%VAT Est Tributario Art 424)

Need to export merchandise temporarily for manufacturing, repairing or transforming, once it gets back to Colombia it has to pay taxes over the added value acquired abroad.

New tariff subsection. Free availability. Docs: DEX Copy, Com Invoice (A Value), Mandate,

Certificate Of Origin (If applicable).

3. REIMPORTING FOR PASSIVE COMPLETION

No Custom Duties since there is no completion – Free availability

DEX Copy, Transp Document, Def Exp (Certification of benefits Pay Back), Mandate.

4. REIMPORTING IN THE SAME CONDITIONS

No Custom Duties: Fixing-Replacement It is under Free Availability

Documents: DEX Temp E for Pas Com, Current Warranty (Original), Transport Doc & Mandate.

5. WARRANTY ACCOMPLISHMENT IMPORT.

Short Term: No Custom Duties, 6 Months + 3, Restricted Availability.

Long Term: Custom Duties payment by Semester Quotes, 5 Years max, Restricted Availability.

Leasing: renting machinery with or without purchasing option. More than six months.

Tourist's vehicles: up to 6 months *2 depending on the visa.

Mode outcomes: Reexporting, Average Import, Destruction, Abandoned or Confiscation.

6. TEMPORARY IMPORT FOR REEXPORTING IN THE SAME CONDITION

A. Capital Goods: Fixing or Completion.

No Custom Duties. 6 months + 6. Restricted Availability. DIAN Industrial Facilities.

Outcome: Reexporting

B. Import- Export Special Systems. (plan Vallejo)

C. For Industrial Processing (ALTEX & UAP’s) Restricted Availability. Bi-monthly reports

7. TEMPORARY IMPORT FOR ACTIVE COMPLETION

Industries Recognized by Mincomercio and Authorized by DIAN. No Custom Duties at first. 2 months for completion.

D I A N a u t h o r i z e s a n d e n a b l e s t h e warehouses.

8. IMPORT FOR TRANSFORMING OR ASSEMBLING

No more than U$2000. Free Availability

No more than 50 Kg, 1,50Mts. No more than 6 units of the same product.

Imports reception & delivery by National Postal Admon, private courriers and CA authorized by Min Communications.

Declared with the Express Manifest.

Tariffs: 98.03.00.00.00.= 10%T & 16%VAT

9. POSTAL TRAFFIC

9. POSTAL TRAFFIC

Catastrophes. No Errands

Merchandise in chapters 84 & 90 Harmonized Tariff Schedule ( Machinery, Equipment, Planes, Vehicles and others) must be reexported or be submitted to the import mode after they are done.

10. URGENT DELIVERIES

(5 calendar days) (U$1.500) as Baggage

No Import register or license

Cash U$10.000

11. TRAVELLERS

Up to three units of: (2.500 USD) Appliances Sport articles Professional equipment

10 units for less than U$ 50

Up to U$1000 with a label stating that they are samples without any commercial value.

12. NON COMMERCIAL VALUED SAMPLES

COMPENSATION PROCESS• Way of Payment • Exchange Declaration # 1 • + 6 months/Report/External Debt • Merchandise + U$10.000/Exchange Dec #

3

IMPORT SUPPORTING DOCUMENTS

IMPORT SUPPORTING DOCUMENTS

• Commercial Invoice • Import Register or License • Import Declaration • Andean Value Declaration • Packing List • Transport Document • Certificate of Origin • Approvals & Certificates – Preserved for 5 years