COLOMBIA has extended the tariff of 35% and 40% on imports of footwear and textiles, respectively, for two more years, further complicating the outlook for companies in the Colon Free Zone.
Up until November 2019, the Colombian government will continue to apply the 35% tariff for footwear and 40% for textiles that enter the country at a value equal to or lower than a predetermined threshold.
For imports of garments that enter with a value equal to or less than $10 per kilo (threshold), the 40% tariff will apply. When the declared price exceeds this threshold, the tariff will be 15%.
In the case of footwear imports, a threshold between $6 and $10 per pair was established (depending on the type of footwear). When these goods enter with values less than or equal to the thresholds, the 35% tariff will be applied. When the declared price exceeds these limits, the tariff applied will be that entitled ‘Most Favored Nation’ (15%).
This measure further complicates the situation faced by companies in the Colon Free Zone, which between 2013 and 2016 saw their re-exports to the South American country fall by 45%.