The most competitive Free Trade Zone in Latin America, allowing sales to the domestic market.

PERMANENT FREE TRADE ZONES

Permanent Free Trade Zones, are geographical areas of no less than 20 hectares, where various companies establish themselves to operate. These Free Trade Zones have two types of users. The first is the Operating User which is the legal person in charge of running the Free Trade Zone, and the second is the Industrial User that can be for producing Goods or  providing Services. Each one has different requirements to be granted the Free Trade Zone Status.

Benefits:

The following are the most relevant Free Trade Zone benefits:

1. A single 15% income tax rate.

2. The declaration granting FTZ status is valid for maximum 30 years, renewable for another equal term.

3. Goods introduced from the rest of the world into a FTZ (i.e. capital goods) do not accrue VAT or custom duties.

4. Goods exported from a FTZ benefit from the Trade Agreements signed by Colombia.(Except Peru)

5. Raw materials, parts and inputs sold from a national customs territory to FTZ users will be VAT exempt.

6. Exports may be made from the FTZ to the rest of the national customs territory.

7. Possibility of partial processing outside the FTZ for a period of up to six months.

8. Quick and simplified customs procedures.

REQUIREMENTS FOR THE INDUSTRIAL USERS OF GOODS AND SERVICES:

 

 

 

 

 

OPERATING USER OF THE PERMANENT FREE TRADE ZONE

The Operating User is the company or foreign branch with the only purpose of developing the administrative and manage activities of the Free Trade Zone, which include the supervision that the industrial users comply with the investment and job requirements. It is necessary that the Operating User be different from the Industrial User and with no economic or shareholding relationship. Additionally, experience in Foreign Trade or previous experience in Free Trade Zones as well as financial capability is required.
It must also have the following characteristics:

• The minimum area required is 20 Hectares.

• To engage that in the next 5 years of the declaratory it will have 5 Industrial Users of goods/services that carry out new investment equal  to or above USD$11.8 million.

• Net assets equivalent to or more than 23.000 Minimum Monthly Legal Wages (USD $ 5.9 million dollars)

• Hire an external auditor with a company registered with the accounting association, its control will have to be according to the NAGA and NIA auditing rules.

• Certificates regarding labor relations, contracts or transactions, to evidence the company's experience in foreign trade, customs or other activities to be developed in the Free Trade Zone.

• Commit to execute the Master Plan of the Free Trade Zone.