Decree 410 of 2020 has been issued with the main objective of mitigating the economic impact that the health and aviation sectors have suffered, by modifying the customs tariff of some products or goods required to address the epidemiological emergency that the country is currently experiencing.
The temporary measure brings with it a tariff reduction to 0% for most-favored-nation (MFN) imports [1] of goods determined according to their tariff heading. That is, those goods that enter the country under these conditions will be positively impacted in their final price, undoubtedly favoring the importing entity or entrepreneur.
The more than 100 tariff headings contemplated in the Decree will not only benefit the health and aviation sectors, but also others such as construction, automotive, chemical, and pharmaceutical. From nuts, paint, chemical compounds; to machine parts, these are some of the goods that can be found in the Decree. Undoubtedly a valuable opportunity for those entrepreneurs who import raw materials or merchandise for resale.
However, it should be clarified that one will be subject to the measures taken by the Directorate of Taxes and National Customs (DIAN), regarding the requirements that the importer of the goods must argue, given that currently the customs sector is directed to provide speed and priority to imports destined for the epidemiological crisis currently being experienced worldwide.
Thus, the current contingency brings
with it the need to implement measures to mitigate the impact that
certain economic sectors are experiencing.
[1] “Countries cannot normally establish discriminations among their various trading partners. If a special advantage is granted to one country, the same must be done for all other Members of the World Trade Organization.” www.wto.org
Author: Sebastián López O. AZC Consulting Attorney