Decree 456 of 2014, which partially amends the customs tariff and replaces Decree 074 of 2013, will become effective from March 30, the Government of Colombia has announced.
As per the new decree, apparel with FOB price of less than or equal to US$ 10 per gross kg would attract ad valorem tariff of 10 percent plus a specific tariff of $5 per gross kg.
However, when the declared FOB price of garments is greater than $10 per gross kg, the specific tariff will be calculated at $3 per gross kilo.
Under the earlier decree, all garments were taxed uniformly and it did not allow import of certain products that were not produced in Colombia, as it was not available to consumers at competitive prices.
It was strongly objected by Panama, as its exports to Colombia were affected, and Panama also filed a complaint with the World Trade Organization (WTO).
The new measure is expected to allow imports of products in accordance with formal trade tariff levels of the WTO, i.e. the effective tariff should not exceed 40 percent.
The implementation of Decree 074 of Customs Tariff from March 1, 2013, was a main reason behind creation of 200,000 new jobs in 2013, in the Colombian apparel sector, according to the Colombian Chamber of Apparel and Allied Workers (CCCyA).