RESTRICTED
WORLD TRADE G/TRIMS/N/1/COL/1
11April 1995
ORGANIZATION(95-0885)
Original: Spanish Committee onTrade-Related Investment Measures
NOTIFICATION UNDER ARTICLE 5.1OFTHE AGREEMENT
ONTRADE-RELATED INVESTMENT MEASURES
Colombia
Thefollowing communication, dated 31March 1995, hasbeenreceived fromthePermanent
Mission ofColombia, aSignatory oftheFinal Acteligible tobecome anoriginal WTO Member.1
_______________
(i) Description ofthemeasure andofitsmain features
WithinthecontextoftheAndeanSubregionalPactandbyvirtueoftheprovisionsofChapterIV,
Section B,oftheCartagena Agreement, on13September 1993 Colombia, Ecuador andVenezuela
subscribed totheComplementarity Agreement fortheAutomotive Sector withaviewtoadopting a
common policy topromote specialization inthesector andtakeadvantage ofthewider subregional
market inarational manner andunder equitable competitive conditions.
InDecember 1993, theGovernment ofColombia issued Decree No.2642 of1993, setting
outtherequirement thatvehicle assembly enterprises should include apercentage oflocalcontent in
vehicles assembled inthecountry.
Thispolicy wasmade more flexible intheregional context oftheAndean Pact, which requires
thatassembling enterprises include aminimum content ofmaterials produced inthesignatory countries
totheAgreement, rather thanofdomestic production.
1. Thecategory intheillustrative listunder which themeasure falls.
Thecategory intheillustrative listunder which themeasure fallsisindicated inparagraph 1(a)
oftheAnnex totheAgreement onTRIMs.
2. Whether theTRIM isapplied bytheGovernment under discretionary authority ormandatory
legislation?
TheTRIM hasbeenapplied under legislation ofgeneral application, namely Decree No.2642
of1993, replaced byDecree No.440of1995.
1Thereplies inthisnotification respond tothepoints contained intheagreed format fornotifications under
Article 5.1,circulated indocument G/TRIMS/1.G/TRIMS/N/1/COL/1
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3. Where theTRIM isgeneral innature, whatarethecriteria fordetermining towhich enterprises
itapplies?
Themeasure applies toallnational orforeign motor vehicle assembly enterprises inColombia.
4. Where theTRIM isapplied pursuant tomandatory legislation, whether thelegislation requires
themeasure tobeapplied tonewenterprises ornewinvestments ofexisting enterprises?
BothDecree No.2642of1993andDecree No.440of1995areapplicable toallmotor vehicle
assembly enterprises (national orforeign) existing inthecountry, aswellastoallthose which may
beestablished infuture.
5. Whether compliance withthemeasure bytheenterprise is(a)mandatory orenforceable under
domestic laworadministrative rulings or(b)necessary toobtain anadvantage. Inthelatter case, the
nature oftheadvantage should bedescribed.
Decree No.440of1995ismandatory andofgeneral application toallmotor vehicle assembly
enterprises inthecountry.
6. When theTRIM relates tospecific products, provide sufficient detail ontheseproducts todefine
thescope ofthemeasure.
Minimum percentages ofcontent areapplied totheassembly oftwocategories ofvehicles:
(a) Category 1:automobiles, jeeps, vehicles forthetransport ofupto16passengers,
including thedriver, andvehicles forthetransport ofgoods uptoatotalmaximum
loaded weight of10,000 American pounds (equivalent to4.537 tons), aswellastheir
chassis complete withcabs;
(b) Category 2:allvehicles notincluded inCategory 1.
7. ThedateofimplementationoftheTRIMandthenatureofanymodificationoftheTRIMeffected
within 180daysprior totheentry intoforce oftheWTO Agreement.
Themeasure hasbeen applicable inColombia since theadoption ofDecree No.2642 of
28December 1993. Decree No.440of1995introduced theconcept ofthepercentage ofsubregional
procurement andthemanner inwhich itistobecalculated, aswellasthecorresponding content
requirements.
8. Whether theTRIM, asapplied under domestic law,includes provision foritsphasing-down
orelimination.
Noprovision hasbeenestablished foritsphasing-down and/or elimination.
9. Thedomestic law,regulation oradministrative guideline under which theTRIM isapplied;
acopyshould besubmitted totheSecretariat tobeavailable forinspection byinterested Members.
Copies ofDecrees Nos.2642 of28December 1993 and440of8March 1995 areattached.2
2CopiesofthesedocumentsareavailableintheSecretariatforinspectionbyinteresteddelegations(Intellectual
Property andInvestment Division).G/TRIMS/N/1/COL/1
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10. Thelevelofgovernment applying theTRIM, thename oftheimplementing agency andany
information ontheprocedures governing itsapplication necessary toenable itsnature andscope to
beunderstood.
TheMinistryofEconomicDevelopmentistheauthorityresponsibleforapplyingandsupervising
theimplementation ofthemeasure. Theabove Ministry requires areport every sixmonths byenterprise
andbycategory onthepercentage ofsubregional purchases, andareport every yearcarried outby
entities specialized inauditandcontrol, which areengaged directly bythevehicle assembly andautopart
enterprises.
(ii) General information ontheprogramme inquestion
Thepolicy ofsupport totheautomotive sector ispursued byColombia within thecontext of
theComplementarity Agreement fortheAutomotive Sector oftheAndean Pact, andisdesigned as
ameasure topromote thedevelopment oftheincipient regional automotive industry.