Colombia liberalizes import restrictions, payment schedules

Business America, July 22, 1985

The Colombian Foreign Trade Institute, INCOMEX, has shifted approximately 359 Colombian Tariff Schedule positions from the prohibited list to the prior import license list, and 218 Colombian tariff schedule positions from the Prior Import License List to the Free Import List.

Through these measures, the government of Colombia is giving special priority to raw materials that are not produced in Colombia, agricultural products, spare parts, and accessories necessary for active local production. These measures have now placed 14.8 percent on the Prior Import License List, and 2.4 percent on the Prohibited Import List. Twenty-nine categories remain on a countertrade list. Certain imports are favored under the Free Import License when they are imported from ALADE and Andean Pact countries.

In addition to the changes in the tariff schedules, the government of Colombia has relaxed its payment schedules, making them more favorable to foreign exporters. Minimum payment terms for the importation of equipment and capital goods have been reduced from three to two years. Payments abroad may be made on the following schedule: up to 15 percent of the import value within the first six months; up to 50 percent by the end of the first year; up to 75 percent by the end of the 18th month; the balance at the end of the second year.

The payment terms on intermediate goods (such as spare parts) were reduced from 18 to 11 months. Payments abroad may be made on the following schedule: up to 30 percent within the first six months, and the balance at the end of the 11th month. Minimum terms remain at six months for raw materials and consumer goods and 12 months for CKD materials. Imports with financing from international lending institutions or foreign governments are not affected.

Minimum payment terms have also been reduced from six months to three months for the importation of fertilizers and raw materials for the production of fertilizers. The government is seeking to further reduce the cost of fertilizer imports to alleviate food processing costs.