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

Project Structure

Phase 1

Achieved

Preparatory work and education process

Phase 2

In progress

Institutional set up and regulatory reforms

Phase 3

In progress

Testing, piloting and launching the centre

Phase 4

Achieved

Supporting legal and regulatory reforms

Phase 5

Planned

Assessment of impact on the Colombian automotive industry

Testimonials

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Alex Perkins

Senior Manager for International Government Affairs at FCA
Fiat Chrysler Automobiles (FCA) designs, engineers, manufactures and sells vehicles and related parts and services in more than 140 countries. Moving goods across borders is part of its everyday operations. “FCA decided to get involved in the Global Alliance because it provided a unique opportunity to leverage the company’s in-house customs and supply chain management expertise to drive economic growth in developing countries in a way that is also meaningful for our local operations in those countries."
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Jyoti Wadhwa

Jyoti Wadhwa, Founder, Sanskriti Vintage, New Delhi
Jyoti Wadhwa is a successful entrepreneur, who sells Indian handicrafts and promotes the spirit of craftsmanship through international trade. In 2010, she set up her online business, Sanskriti Vintage, to sell vintage handicraft fabrics, various types of embroidery, and other craft items. At the time, she worked from home while taking care of her child and handled all operations single-handedly. Ten years later, she employs 25 people, supporting local artisans and serving antique collectors and aesthetes all over the world.
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John Kornerup Bang

Head of Sustainability Strategy and Shared Value at Maersk
As one of the world’s largest integrated transport and logistics companies operating in 130 countries, Maersk is a major part of the global trading system. “International trade has helped lift over a billion people out of poverty. At the same time, we recognise that we need to make global trade available for everybody so that all can share in its benefits. That’s why a key pillar of our sustainability strategy is to multiply the benefits of trade by supporting countries to implement the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA) – and why we work with the Alliance to do it."
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Revathi Roy

Revathi Roy, Co-founder and CEO, HeyDeedee, Mumbai
Revathi Roy set up India’s first all-female delivery company HeyDeedee in 2016 to offer new training and professional opportunities to low-income women in Mumbai. Three years later, her business operates in 10 Indian cities, employs 10 000 women agents, and has partnerships with giants like Amazon. “A career in logistics is not an intuitive leap for Indian women since this field has been largely dominated by men. Parents see jobs in the call centre industry as a safer option for their daughters,” explains Revathi.
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