WORLD TRADE G/SCM/N/3/COL/Suppl.2
G/SCM/N/16/COL/Suppl.1
G/SCM/N/25/COL/Suppl.1
ORGANIZATION 25July1997
(97-3149)
Original: Spanish Committee onSubsidies and
Countervailing Measures
SUBSIDIES
Notifications Pursuant toArticle XVI.1 oftheGATT 1994 and
Article 25oftheAgreement onSubsidies and
Countervailing Measures
COLOMBIA
Supplement
Thefollowing notification, dated 10July1997, hasbeenreceived fromthePermanent Mission
ofColombia.
_______________
Transport Compensation Mechanism (MCT)
1. Description ofthemechanism
TheMCT isameasure designed toencourage exports tocountries thatdonothavedirect
transport services bypaying partofthefreight costs tothecountry ofdestination.
Thebasis forpayment under thismechanism isthefreight charge authorized inadvance by
Proexport Colombia.
2. Notification period
Firstnotification totheWTO, June1997.
3. Objective andpurpose ofthesubsidy
Theobjective istostimulate exports tocountries thatdonothaveregular andefficient direct
transport services andtofacilitate access tonewmarkets foraperiod offiveyears.
4. Basis andlegislation
- Resolutions Proexport 003and004of1993
- External Circular Proexport 002of1993
- Proexport Circular P-TRN 9075 of1994
./.G/SCM/N/3/COL/Suppl.2
G/SCM/N/16/COL/Suppl.1
G/SCM/N/25/COL/Suppl.1
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5. Form ofsubsidy
Forthefirstthree years ofitsimplementation, theMCT willrefund 26percentofthetotal
costoffreight tothecountry ofdestination. During thefollowing twoyears, itwillrefund 13percent
ofthevalue indicated.
6. Towhom andhowthesubsidy ispaid
Thesubsidy ispaidtoexporters whomeet therequirements forbenefiting from theMCT.
Payment ismade against evidence ofthecharges paidsenttoProexport Colombia bytheexporter not
laterthan120daysaftershipment.
7. Fiscal costofthesubsidy
In1994, theMCT amounted toUS$193 million andin1995and1996toUS$361 million and
US$373 respectively.
8. Initiation andduration oftheprogramme
Theprogramme wassetupin1983andrevised in1993. Itapplies toeachproduct destination
forfiveconsecutive years fromthedateonwhich itisfirstutilized. Inviewofthecommitments under
theWTO, however, adegressive timetable hasbeenestablished andbytheyear2003 themechanism
willnolonger beineffect.
9. Statistics ontheimpact oftheprogramme
Year Total exports
(inUS$thousand)F.o.b. exports
benefiting from
theMCT
(inUS$thousand)Value oftheMCT
(inUS$thousand)Percentage value
oftheMCT
1994 8,461,010 7,111 193 2.7
1995 10,129,485 19,479 361 1.9
1996 10,574,049 18,118 373 2.1
Thepercentage value oftheMCT represents theMCT value divided among exports with
therighttotheMCT.