WORLD TRADE G/SG/N/1/COL/1
3April 1995
ORGANIZATION(95-0784)
Original: Spanish Committee onSafeguards
NOTIFICATION OFLAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TOSAFEGUARD MEASURES
Colombia
Thefollowing communication, dated 15March 1995, hasbeenreceived fromthePermanent
Mission ofColombia, aSignatory oftheFinal Acteligible tobecome anoriginal Member oftheWTO.
_______________
Inaccordance withtheAgreement onSafeguards, Ienclose thefulltextofDecree 809of
21April 1994, which contains theprovisions relative tosafeguard measures inColombia, theauthorities
competent toinitiate andconduct theinvestigations andtheprocedures governing saidinvestigations.G/SG/N/1/COL/1
Page2
MINISTRY OFFOREIGN TRADE
DECREE No.809OF21APRIL 1994
Regulating theapplication ofsafeguard measures
THE PRESIDENT OFTHE REPUBLIC OFCOLOMBIA
Inexercise ofhisconstitutional andlawful powers, especially those conferred onhimby
Article 189,paragraph 25,ofthePolitical Constitution andsubject totheprinciples, objectives and
criteria setoutinLaw49of1981 andLaw07of1991,
CONSIDERING:
ThatArticle189,paragraph25,ofthePoliticalConstitutionauthorizestheNationalGovernment
toregulate Colombia 'sforeign trade;
ThatLaw07of1991establishes inArticle 2thegeneral principles tobefollowed bytheNational
Government inlaying down therules whereby international trade isregulated;
ThatitisnecessarytoregulatetheinstrumentsofColombia'sforeigntradepolicyforthepurpose
ofharmonizing themwithinternational trends andprinciples andwithcommitments undertaken through
plurilateral organizations andagreements;
Thattheapplication ofsafeguard measures requires asetofrulestofoster modernization and
effective andfaircompetition inthedomestic industry, aswellastheeffectiveness andtransparency
ofourprocess ofinternationalizing theeconomy;
ThatthedraftofthefinaltextofthisDecree wasexamined andadopted bytheHigher Council
forForeign Trade atameeting heldon8February 1994, asshown bytherecord;
DECREES:
CHAPTER I
GENERAL
ARTICLE 1.Scope. Theprovisions ofthisDecree comply withthegeneral system regulating
theapplication ofsafeguard measures, without prejudice tothespecial rulescontained ininternational
agreements orconventions concluded withother countries andtolegislation adopted toremedy the
injurious effects oftheunfair practices ofdumping andsubsidization.
ARTICLE 2.Definitions. Forthepurposes ofthisDecree, thefollowing definitions shall
apply:
Safeguard: Ameasure ofanexceptional andtemporary character applied totheimportation
ofaproduct, when there isasubstantial increase inimports ofanidentical, likeordirectly
competitive product insuchquantities astocause serious injury tothedomestic industry that
produces identical, likeordirectly competitive products;G/SG/N/1/COL/1
Page3
Provisional safeguard: Asafeguard measure adopted temporarily incritical circumstances for
thedomestic industry, forthepurpose ofpreventing irreparable injury thereto;
Serious injury: Significant material impairment intheposition ofadomestic industry;
Domestic industry: "Domestic industry" shall beunderstood tomean theproducers asa
significant whole ofidentical, likeordirectly competitive products orthose whose collective
output ofidentical, likeordirectly competitive products constitutes amajor proportion ofthe
totaldomestic production ofthose products;
Adjustment measures: Aprogramme orsetofactions adopted bydomestic producers to
supplement safeguard measures, forthepurpose ofimproving theircompetitiveness andfor
orderly adjustment oftheirproduction activities toforeign competition.
CHAPTER II
PROCEDURE FOR THE APPLICATION OFSAFEGUARD MEASURES
SECTION I
Safeguards
ARTICLE 3.Application fortheimposition ofsafeguard measures. Anyone applying for
theadoption ofasafeguard measure shallrefertotheColombian Foreign Trade Institute (INCOMEX)
anddemonstrate, atleast, compliance withthefollowing requirements:
1. Thattheapplicant orapplicants account foraconsiderable proportion ofthedomestic
industry. Theapplication maybesubmitted directly orthrough theproducers '
association;
2. Thattherehasbeenasubstantial increase inimports oftheproduct andthereisserious
injury tothedomestic industry producing theidentical, likeordirectly competitive
product;
3. Thattheincrease inimports hasbeeninsuchquantities astoconstitute thesubstantial
cause oftheserious injury tothedomestic industry.
ARTICLE 4.Submission ofadjustment measures. Atanytimeinthecourse ofinvestigation,
theapplicants maysubmit toINCOMEX foritsconsideration thecoordinated action ortheprogramme
thatthedomestic producers willadopt toachieve theadjustment toforeign competition, soasto
supplement thesafeguard measures. Similarly, INCOMEX andtheauthorities responsible for
recommending anddeciding ontheimposition ofsafeguard measures mayrequest suchinformation
from theinterested parties.
ARTICLE 5.Requisite information. When theapplication issubmitted, theapplicant shall
supply thefollowing information:
1. Technical description oftheimported product orproducts concerned, withthetariff
headings;
2. Country orcountries oforigin orofexports;G/SG/N/1/COL/1
Page4
3. Name, domicile andtaxation number (NIT) oftheimporters inquestion, ifknown.
Name anddomicile oftheexporters inquestion, ifknown;
4. Explanationoftheseriousinjuryaffectingthedomesticindustry,aswellasidentification
andjustification ofthecircumstances warranting application ofthesafeguard measure;
5. Statement andsubmission ofthesupporting evidence.
ARTICLE 6.Determination ofserious injury. Forthepurpose ofdemonstrating serious injury,
theapplicant shallsubmit objective, quantifiable andsufficiently proven factsandshallinclude atleast
ananalysis ofthefollowing factors:
1. Information ontherelevant production, considered globally andindividually;
2. Rateofgrowth andvolume ofimports oftheproduct concerned, inparticular to
determine whether theyhaveincreased significantly, inbothabsolute andrelative terms
andinrelation toColombia 'stotaloutput andapparent domestic consumption;
3. Price behaviour oftheimported product andeffects oftheimports onprices ofthe
likeordirectly competitive product inthedomestic market;
4. Effects oftheimports ondomestic production ofthelikeordirectly competitive product
withregard tosuch factors asproduction itself, utilization ofinstalled capacity,
inventories, sales, profits, employment, wages, andwhere appropriate, justification
ofthesubstitutability oftheproducts covered bytheapplication;
5. Effects ontheposition ofthedomestic industry caused byfactors other thanthe
import-related factors;
6. Indetermining serious injury inthecaseofagricultural andfisheries products, itshall
bepossible toregard asimportant circumstances thefactthatthelevels ofdomestic
output ofsuchproducts andexisting inventories inColombia aresufficiently highto
guarantee domestic consumption andtoproduce surpluses untilthenextharvest, as
wellastheseasonal character ofimports inrelation totheseasonal character ofcrops.
Nooneofthese parameters byitself shallconstitute decisive guidance onthematter.
ARTICLE 7.Provisional safeguard. Iftheapplicant considers thatthere aregrounds forthe
imposition ofaprovisional safeguard, heshalldemonstrate, inaddition tothematters stipulated in
theprevious Articles, thatcritical circumstances justify suchacourse, under theterms ofArticle 14
ofthisDecree.
ARTICLE 8.Official receipt. Iffromanexamination oftheapplication INCOMEX establishes
thattherequirements ofthisDecree havebeenmet,itshallsoinform theapplicant within fifteen
(15)daysfollowing thedateofreceipt oftheapplication.
Iftheinformation anddocuments provided bytheinterested party insubmitting hisapplication
areinadequate, theterms ofArticle 12oftheAdministrative Litigation Code shallapply.
ARTICLE 9.Evaluation ofthegrounds fortheapplication. INCOMEX shallhaveaperiod
offifteen (15)daysfollowing dispatch ofthecommunication acknowledging receipt oftheapplication
toevaluate theapplication anddetermine whether there aregrounds forinitiating aninvestigation.G/SG/N/1/COL/1
Page5
ARTICLE 10.Initiation oftheinvestigation. Within thetime-limit referred tointheprevious
Article, INCOMEX shall, inareasoned resolution tobepublished intheMinistry ofForeign Trade
Gazette, decide whether toinitiate theinvestigation and,ifso,convene theinterested parties inorder
forthem toexpress theiropinions, dulysubstantiated, andprovide anyevidence anddocuments that
theyconsider relevant, stipulating forthatpurpose aperiod oftwenty (20)daysfollowing thedate
ofthenotice ofmeeting.
INCOMEX shallforward acopyoftheresolution referred tointhisArticle tothemembers
oftheCustoms, Tariffs andForeign Trade Committee.
Duringtheinvestigationphase,INCOMEXmaycollect,exofficio,orrequestfromtheinterested
parties, theevidence itconsiders necessary todetermine whether themeasure under consideration is
appropriate.
ARTICLE 11.Conclusion oftheinvestigation. Within amaximum period of60daysfollowing
thedateofinitiation oftheinvestigation, INCOMEX shallconclude theinvestigation andforward the
findings, together withanyrecommendations, totheCustoms, Tariffs andForeign Trade Committee.
ARTICLE 12.Modalities ofthesafeguard measure applicable. Asageneral rule,thesafeguard
measure applicable shallconsist ofacustoms dutyontheimported product determined ascausing the
injury. Inexceptional circumstances, aquantitative restriction maybeimposed onimportation ofthe
product, asanecessary measure tocounteract serious injury tothedomestic industry.
ARTICLE 13.Imposition ofsafeguard measures. TheCustoms, Tariffs andForeign Trade
Committee shall consider thereport submitted byINCOMEX andsubmit thecorresponding
recommendation totheHigher Council forForeign Trade. TheHigher Council forForeign Trade
shallevaluate itandfirstsubmit itsopinion totheGovernment, fortheadoption ofanychanges in
customs tariffs pursuant torelevant legalprovisions. Inthecaseofquantitative restrictions, theHigher
Council shalladopt therelevant decision.
SECTION II
Provisional Safeguards
ARTICLE 14.Critical circumstances fortheapplication ofprovisional safeguard measures.
Forthepurposesofrecommendingandadoptingaprovisionalsafeguardmeasure,theremustbesufficient
evidence ofcritical circumstances forthedomestic industry where delay would cause injury difficult
torepair.
ARTICLE 15.Recommendation andapplication ofprovisional safeguards. Atanytime
following receipt oftheapplication andwithin amaximum of30days, when intheopinion ofthe
investigating authority thecritical circumstances referred tointheprevious Article arise, INCOMEX
shallsubmit ananalysis ofthesituation andrecommendation totheCustoms, Tariffs andForeign Trade
Committee, inorder fortheCommittee tosubmit totheHigher Council forForeign Trade a
recommendation proposing totheGovernment theadoption ofaprovisional safeguard measure, and
thecorresponding decision shall beadopted within amaximum period of20days following the
recommendation bytheHigher Council forForeign Trade.
ARTICLE 16. Modalities. Theprovisional safeguard measure applicable shall consist
exclusively ofacustoms duty.G/SG/N/1/COL/1
Page6
CHAPTER III
Agricultural Safeguards onGrounds ofThreat ofInjury
ARTICLE 17.Definitions. Without prejudice toArticle 2ofthisDecree, thefollowing
definitions shallapply:
Agricultural safeguards ongrounds ofthreat ofinjury: Ameasure ofanexceptional and
temporarycharacterwhichmaybeappliedtotheimportationofagriculturalorfisheriesproducts,
intheevent ofathreat ofserious injury tothesituation ofagricultural orfisheries production;
Threat ofserious injury: Afallininternational prices ofanagricultural orfisheries product,
below domestic production costs, thatthreatens significant material impairment ofthesituation
inagricultural orfisheries production.
ARTICLE 18.Scope. Agricultural safeguards ongrounds ofthreat ofinjury maybeapplied
toagricultural andfisheries products under thefollowing tariff headings:
Chapters 1to24,inclusive.
29.05.43
29.05.44
33.01
35.01 to35.05
38.09.10
38.23.60
41.01 to41.03
43.01
50.01 to50.03
51.01 to51.03
52.01 to52.03
53.01
53.02
PARAGRAPH. Agricultural safeguards ongrounds ofthreat ofinjury maynotbeapplied
toproducts defined inthisArticle thatareincluded inthevariable tariffs system.
ARTICLE 19.Anagricultural safeguard measure onthegrounds ofthreat ofinjury shallconsist
ofacustoms duty.
CHAPTER IV
PROVISIONS APPLICABLE TOSAFEGUARDS
ARTICLE 20.Non-discriminatory character ofthemeasure. Safeguard measures shallapply
onanon-discriminatory basistoimports oftheproduct causing serious injury tothedomestic industry.
ARTICLE 21.Notification andprocess ofconsultations. When anaffirmative recommendation
ismade bytheCustoms, Tariffs andForeign Trade Committee toapply definitive safeguards in
accordance withtheprovisions ofArticle 13ofthisDecree, thecorresponding notification shallbe
senttothebodies oftheGeneral Agreement onTariffs andTrade (GATT) andtheconsultations provided
forinthatAgreement shallbeheldwithanycountries thatmaybeaffected.G/SG/N/1/COL/1
Page7
Inthecaseofprovisional safeguards, consultations maybenotified andheldimmediately after
themeasure hasbeenimposed.
PARAGRAPH. Theprocedure provided forinthisArticle shallnotapply when themeasure
adopted isacustoms dutyaffecting aproduct inrespect ofwhich thecountry hasnotgranted concessions
atthemultilateral level, orwhen thedutylevied islessthansuchconcessions.
ARTICLE 22.Scope ofthemeasures. Thescope ofanysafeguard measures applied shall
bethescope necessary toredress theserious injury tothedomestic industry ortoremedy thespecial
situation thatgaverisetothem.
Theapplication ofaquantitative restriction shallnotreduce thevolume ofimports below the
average annual levelofimports overthepastthreeyears, unless itcanbedemonstrated thatitismore
appropriate totakeadifferent level. Forthepurposes ofdetermining suchlevel, theperiod inwhich
theproduct concerned wassubject toaprior licensing system shallbedisregarded.
ARTICLE 23.Duration ofthemeasures. Safeguard measures shallapply onlyforsuchperiod
oftimeasisdeemed necessary toremedy theserious injury tothedomestic industry andshallinno
caseexceed oneyear.
Theperiod stipulated inthisArticle maybeextended forafurther year, provided ithasbeen
established bytheHigher Council forForeign Trade thattheconditions which gaverisetoapplication
ofthemeasure continue toexist.
Inextending ormodifying safeguard measures, allowance shallbemade foradjustment action
bydomestic producers andtheeffectiveness thereof inrestoring thecompetitiveness ofthedomestic
industry.
Ameasure adopted when invoking aprovisional agricultural safeguard shallbeoperative until
suchtimeasadecision hasbeentaken toadopt orreject adefinitive safeguard. Inanyevent, itshall
beinforce foramaximum period of90days.
Ameasure adopted byinvoking anagricultural safeguard onthegrounds ofthreat ofinjury,
inaccordance withArticles 17and18,shallbeoperative untilsuchtimeasthecircumstances which
gaverisetoitsapplication havedisappeared. Themaximum period forwhich anagricultural safeguard
maybeinforce shallbesubject totheterms ofthisArticle.
ARTICLE 24.Application ofsafeguards tothesame product. Nosafeguard measure shall
beapplied again totheimportation ofaproduct which hasbeensubject tosuchameasure, foraperiod
oftimeequal tothatduring which suchmeasure hadbeenpreviously applied, provided thattheperiod
ofnon-application isatleastoneyear.
ARTICLE 25.Advisability ofthesafeguard. Before recommending theimposition ofa
safeguard measure, theCustoms, Tariffs andForeign Trade Committee andtheHigher Council for
Foreign Trade shallevaluate theimpact thatitmayhaveonthenational economy andwhether itis
consonant withtheaimsofeconomic policy andwithopening upandinternationalizing theeconomy.
ARTICLE 26.Exofficio investigation. INCOMEX mayonlycarry outtheinvestigation
exofficio ,onitsowninitiative orattherequest oftheMinistry ofthesector towhich theproduct or
products relate, when ithassufficient evidence ofserious injury tothedomestic industry, orofathreat
ofserious injury intheagricultural sector. Inthecaseofinvestigations initiated exofficio ,thesame
procedure asforinvestigations applied forbyprivate individuals shallbefollowed, where appropriate.G/SG/N/1/COL/1
Page8
ARTICLE 27.Evaluation ofadjustment measures. Attherequest ofpersons representing
thedomestic industry affected, theMinistry ofDevelopment, onitsownaccount orincoordination
withother interested bodies, maycooperate inevaluating thesubstance andpossible effectiveness of
adjustment measures thattheindustry intends toadopt tosupplement safeguard measures. Thesame
request maybemade afterasafeguard measure hasbeenadopted, forthepurpose ofevaluating the
results oftheadjustment programme anditsimpact onrestoring competitiveness.
CHAPTER V
Final Provisions
ARTICLE 28.Guarantees. Incases where aprovisional tariffsafeguard measure isadopted,
payment oftheresulting duties maybeguaranteed bylodging asecurity withthecorresponding customs
authority, within thetime-limit indicated inthedecree whereby themeasure wasadopted. Securities
shallbegoverned bytheprovisions oftheCustoms legislation.
ARTICLE 29.Confidentiality. Theinvestigating authority shallguarantee theconfidentiality
ofanydocument which, pursuant totheprovisions inforce, issubmitted asconfidential andshallrequire
theperson providing ittosupply anon-confidential summary ofthedocument.
Inanycase, theperson providing thedocument may, voluntarily andinwriting, waive
confidentiality.
ARTICLE 30.Reports. INCOMEX shallsubmit totheCustoms, Tariffs andForeign Trade
Committee andtotheHigher Council forForeign Trade aquarterly report evaluating theeffects of
theapplication ofsafeguard measures, forthepurpose ofadopting appropriate decisions onextending
ormodifying themeasures. Inthecaseofprovisional safeguard measures, reports shallbesubmitted
monthly, forthesame purpose.
ARTICLE 31.Entry intoforce. ThisDecree shall enter intoforce asfrom thedateof
publication.
FOR PUBLICATION AND IMPLEMENTATION.
Done inSanta FedeBogotá, D.C., on21April 1994,
(Signed) RUDOLF HOMMES R.
MINISTER OFFINANCE AND PUBLIC CREDIT
(Signed) JUAN MANUEL SANTOS C.
MINISTER OFFOREIGN TRADE