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Customs
procedures have been simplified significantly; fewer
forms are required, as import/export procedures and
customs clearance have become practically virtual.
Importers are responsible for placing a correct value on
imported merchandise and paying corresponding duties and
fees through commercial banks. The drastic reduction in
paperwork has simplified and accelerated the customs
clearance process from weeks to a matter of hours.
However, pilferage in customs warehouses continues to be
a major problem. Certificates of conformity may be
required for sensitive imports and other categories of
products suspected of being imported through smuggling
and/or fraud.
Warehousing charges : Imported goods stored in
customs warehouses are subject to fees if an import
manifest is not presented within two working days from
their arrival.
Samples : Samples usually require the same
documents as commercial shipments; they may be imported
without an import license, registration form r payment
of import duties if they are consigned to a designated
free trade zone, bonded warehouse or imported on a
temporary basis in-bond.
Prior authorization requirements :
Phytosanitary clearance is required, as well as permits
or proof of compliance, which is required by government
entities when importing raw cotton, cotton yarns and
other vegetable fibers.
Labeling : Textile care, percentages of fiber
content and country of origin or manufacture must be
listed on the labels of apparel and other textiles
imported into Colombia.
Sizing/metrification : The metric system is
used in Colombia. Sizes are identified both as small,
medium, large, extra-large, etc. and by European size
numbers.
Merchandising calendar : October, November and
December are considered the most important months for
textile and apparel sales. Orders are usually placed
between June and August. Merchandise should be with
retailers by the end of October for end-of-year sales.
Certain holidays and celebrations are also important for
apparel sales : Love and Friendship Day ( like
Valentine's Day, but in September), Secretaries' Day,
Mother's Day, Father's Day, Christmas, etc.
Financing : Most products are imported through
letters of credit and/or time drafts. Soft and long-term
financing is an important sales tool, especially for
government imports or public tenders.
Colombian
importers may freely negotiate payment terms with their
suppliers, but importers must list the agreed-upon
payment terms on the import documents and may not
subsequently change them. Imports of consumer and
intermediate goods and raw materials must be paid for
within six months. All other imports are payable within
the timetables set on the import/export documentation,
plus a grace period of three additional months. Recently
announced monetary measures may limit amounts, advance
deposits and payback timetables for direct external
loans.
U.S. exporters
should be alert to financial market competition and be
prepared to offer soft and long-term financing after
verifying the customer's credit status and the
guarantees offered. Local importers usually obtain trade
financing from commercial banks or credit agencies.
Colombian exporters have access to credit offered by the
Colombian Foreign Trade Bank (Banco de Comercio Exterior
_ BANCOLDEX), which replaced the former Export Promotion
Fund _ PROEXPO. This credit is granted at competitive
commercial rates and may be requested at any stage of a
foreign trade transaction (including raw material
purchase, technical assistance, marketing and promotion,
shipment, etc.). This credit is now being extended to
Colombian importers-namely for industrial imports.
Direct Import Costs :
Apparel from
around the world now appears in Colombian stores.
Although an increasing percentage of these products is
legally imported, a significant amount comes in through
contraband, which is a major problem, especially for
consumer goods. Over US$ 5.0 billion in all kinds of
products (mainly consumer goods) is estimated to enter
the country illegally.
One of the
causes for so much contraband is the fact that most
imports of consumer goods, consumer electronics and
apparel (in addition to a 15 percent estimate for
freight and insurance FOB costs), are subject to a 1.2
percent surcharge on the FOB value of goods for a
so-called "Customs Services Fund" (which was
introduced recently under Article 56 of Law 633 of
December 29, 2000), plus a 20 percent CIF import duty
and a 16 percent value-added tax (VAT) assessed on the
CIF-duty-paid value of imported products. This
approximate 62 percent margin over the basic FOB price
of legally imported goods encourages contraband.
An
example of Apparel Landed Costs in Colombia :
Base Price 100
FOB
Insurance/Freight Estimate (15%) 15
Dutiable CIF Base 115,
20% CIF tariff 23
Subtotal 138
16% on CIF-Duty-Paid Value 22.08
Subtotal 160.08
1.2% FOB
Customs Services Surcharge 1.20
T
otal Landed Cost of Apparel 161.28
U.S. exporters
should note that consumers in Colombia usually end up
paying an additional 80 to 120 percent over the FOB
price of imports. Final retail prices usually depend on
profit margins agreed on between U.S. suppliers and
their Colombian representatives.
TRADE SHOWS
SUMMARY: The COLOMBIATEX fashion
and apparel show, which also features textile machinery,
ancillary equipment and textile materials and inputs,
takes place in January in Medellin, the center for
textile mills in Colombia. COLOMBIATEX is a trade show
recruited and managed in INEXMODA, the Colombian
Government Fashion Institute created to support the
Colombian apparel industry. INEXMODA also mounts the
COLOMBIAMODA show for designers and producers of
apparel, intimate wear and outerwear in Medellin in
August of each year. | 
