Colombia extends the tariffs on clothing and footwear imported from Panama for two years

The Government of Colombia extended for two more years the measures adopted in November 2016 to regulate the import of apparel and footwear after a ruling issued by the Organization World Trade Organization (WTO) in a dispute with Panama.

Bogotá, Nov 9 (EFE) .- The Government of Colombia extended for two more years the measures adopted in November 2016 to regulate the import of clothing and footwear after a ruling issued. by the World Trade Organization (WTO) in a dispute with Panama.

Decree 1789, signed by the Ministers of Finance and Public Credit, Mauricio Cárdenas, and of Commerce, Industry and Tourism, María Lorena Gutiérrez, came into force on November 2, 2017, according to the document published on the website of the Presidency.

The regulation establishes a tariff of 40 % to apparel imports when the declared price is less than or equal to 10 dollars per kilo, and 35% for footwear with prices that range between 6 and 10 dollars per par.

On November 2 of last year, the Government defended the measures approved at that time to combat smuggling and under-invoicing of clothing and footwear by indicating that complies with the WTO ruling in a dispute with Panama.

Colombia began in 2012 to apply 10% tariffs on footwear and textiles from the Panamanian Colon Free Zone (ZLC), so that Panama went to the WTO, which ruled in its favor.

The Colombian government appealed the decision, but in mid-2016 the WTO confirmed it.

assured in November of last year that it stopped applying the mixed tariff established for the imports of apparel and footwear, which was found incompatible by the Body of Solution of WTO Differences in the case with Panama, for exceeding in some cases the maximum bound tariff allowed.

In addition, it indicated that the Directorate of Taxes and National Customs of Colombia (DIAN) will apply strict customs controls for goods with ostensibly low import prices.

Panama expressed its rejection of the measures at that time, warn that they "again fail to comply with their obligations" as a member of the WTO, "as provided in the rulings of the Dispute Settlement Body on the mixed tariff and the restrictions on ports of entry "demanded by that country.