Colombia

In progress

Establishing a Centre for Trade Facilitation and Good Practices

Supporting growth in Colombia’s automotive industry

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The automotive industry is a key economic sector in Colombia, contributing significantly to gross domestic product and generating thousands of jobs. Our analysis with the Colombian customs agency, DIAN, and the private sector found that the industry could unlock further economic growth if rules on classification, valuation and origin were reformed. If customs was to issue advance rulings to clarify the classification, valuation and origin of goods prior to their importation or exportation, importers and vehicle assembly companies would benefit from lower clearance times at borders.

What we are doing

The Alliance is working with DIAN and the private sector to establish a Center for Trade Facilitation and Good Practices to process advance rulings affecting the automotive industry. The centre will be run by customs and have a team dedicated to working with the automotive industry in particular. This means decision-making is centralised by industry and officials have specialised knowledge and understanding of the sector and its needs.

Our project involves:

  • establishing a working group comprised of customs officials and representatives of the automotive industry to direct and oversee the work of the centre
  • developing a pilot proposal to reform advance rulings in the automotive sector
  • assisting with the institutional setting-up of the centre, including helping to obtain legal support
  • testing and launching the centre
  • providing experts to assess the impact of the centre on external users and on customs clearance

Benefits

The establishment of a Center for Trade Facilitation and Good Practices in Colombia is a win for the government, the private sector, and the wider Colombian population. It will:

  • improve compliance with applicable laws and regulations
  • improve predictability and harmonise customs processing across all ports of entry
  • establish a single point of contact that will streamline administrative processes, eliminating duplicate work and reducing requests for information
  • enhance customs’ knowledge of ruling on key automotive industry practices and the importer’s specific commodities
  • reduce costs for both traders and government through quicker release times and fewer holds or examinations
  • improve the competiveness of the Colombian automotive industry allowing it to attract investment
  • build trust between Colombian customs and importers

Monitoring and evaluation

We are monitoring and evaluating the project throughout its duration. Key indicators include:

  • waiting times and costs at the border
  • costs to traders who receive advance rulings
  • the number and percentage of automotive companies using the centre disaggregated by size using OECD standards

Private sector support

In Colombia we are looking for businesses to get involved in a wide range of activities including:

  • providing advice and expertise on best practice in centres for excellence and expertise as a private sector user
  • testing and piloting of the centre
  • assessing the centre’s impact

 

Timeline

The project will be implemented in five phases over 24 months.

Phase 1

3 months

Preparatory work and education process

Phase 2

6 months

Institutional set up and regulatory reforms

Phase 3

6 months

Testing, piloting and launching the centre

Phase 4

3 months

Supporting legal and regulatory reforms

Phase 5

6 months

Assessment of impact on the Colombian automotive industry

Get involved

Find out how to get involved in the wider Alliance by clicking the boxes to the right.

Contact us in Colombia