28 Aug 2015
Colombia Provides Duty-Free Treatment to Certain Automotive Parts
The Colombian government has amended the motor vehicle industry promotion programme by providing duty-free treatment to imports of automotive parts and components classified under 538 separate tariff lines that are not made in Colombia. To qualify for the duty exemption, subject auto parts must be used in the production of a range of motor vehicles or parts/components thereof that are either sold domestically or exported. The production activity must take place within 12 months from the date of importation of the goods, although that deadline may be extended by a maximum of three months. Should the required production process not take place within the stipulated timeframe, the importer will have to submit an import declaration and pay all applicable duties as well as any penalties and interest or, alternately, re-export the merchandise within 30 days. Colombian authorities indicate that imports of subject merchandise will still be subject to the applicable value-added tax.