LAW 219 1995
Official Gazette No. 42,130, of 30 November 1995
Whereby share of cotton promotion is established, a Development Fund is created and rules are for collection and administration.
CONGRESS OF COLOMBIA DECREES
ARTICLE 1o. ALGODONERA agribusiness. For the purposes of this Act, it is recognized by cotton farming agribusiness aimed the cultivation and harvesting of seed cotton and profit and fruit processing to obtain: fiber, seed and cotton yarn.
. FEE Cotton Development. Establécese share of cotton promotion, as a contribution of character to tax, which will be equivalent to half percent (0.5%) of the value of each kilogram of cotton fiber domestic production as in cotton gin; one percent (1%) of the value of each kilogram of seed cotton ginning position in domestic production; to half percent (0.5%) of the value on board port of origin (FOB) for each kilogram of fiber imported cotton, zero point five percent (0.25%) of the value in source port (FOB) for each kilogram of cotton yarn imported into the country and zero point five percent (0.25%) of the value in source port (FOB) for each kilogram of cotton fiber content blend yarn with other fibers, imported to the country.
PARÁGRAFO. For purposes of the tax on the value of content in cotton yarns with fiber blends imported, it is assumed that this value is directly proportional to the percentage of cotton fiber in the mix, according to the tariff heading and description of goods in the respective import registration. Effective Jurisprudence
ARTICLE 3. DEVELOPMENT FUND ALGODONERO. Create the Cotton Development Fund to manage resources from the collection of the quota of cotton promotion and heritage formed by them which will stick to the guidelines of sectoral policy of the Ministry of Agriculture and Rural Development. The management entity is required to manage the Fund in separate accounts, so they are not confused with the resources and own assets of the entity.
ARTICLE 4. SUBJECTS OF THE QUOTA. Any natural or legal person producing country in the fiber and cottonseed or import fiber or cotton yarn or cotton blend is obliged to pay the fee Cotton Development. Effective Jurisprudence
The 5th ITEM. RETAINERS AGENTS AND PAYMENT FEE. Any natural or legal person who buys fiber or cotton seed domestically produced or imported fiber or cotton yarn or cotton blend, either for domestic consumption or for export, is required to retain the value of the quota of cotton promotion when making payment.
The withholding agent will keep the value of all the shares retained within the respective calendar month in a separate account and is obliged to deposit them in the special account of the Cotton Development Fund within the first half of the following month through entity contracted for administration.
PARÁGRAFO. If agree to pay a purchase or import in various counted, retention will proportionately to each partial payment. Effective Jurisprudence
ARTICLE 6o. OBJECTIVES. The resources of the Development Fund Algodonero be used exclusively in:
1. Support programs and research projects and technology transfer aimed at sustainable development of cotton production in the country.
2. Support programs and projects aimed at improving efficiency and production efficiency, increase productivity, reduce costs, improve fiber quality and national seeds and, in general, recover and remain competitive.
3. Support programs and research projects and technology transfer aimed at making more efficient and effective collection, analysis and dissemination of relevant and useful information on technological advances to production and ginning cotton fiber and seed information.
4. Support training projects in various areas related to production technologies, ginning and processing of cotton fiber and seed. PARAGRAPH 1.
. To achieve these ends, the managing entity may advance the various programs and projects directly or through contracts or partnership agreement, or co-financing with natural or legal persons public, private or mixed, national or foreign, as well as join organizations or information networks.
. Algodonero the entity administering the Fund should take into account the medium and small producers to achieve the objectives of this Act.
PARAGRAPH 3.. The resources of the Development Fund Algodonero be administered in accordance with the principles of frugality, economy, accountability and transparency.
ARTICLE 7. The Government, through the Minister of Agriculture and Rural Development, will contract with the Fund Management Cotton Development and collection of the fee with a non profit sufficiently representative of the cotton growers nationwide.
PARÁGRAFO. The respective contract will have a duration of ten (10) years, and it will be available with regard to resource management, the definition and implementation of programs and projects, powers and prohibitions of the managing entity and other requirements and conditions required for compliance with legal and contractual purposes and objectives. The consideration for the administration of the Fund shall be determined annually by the Steering Committee of the same, with the favorable vote of the Ministry of Agriculture, considering the budget for each fiscal year, with a maximum of ten percent (10%) of annual revenues. This consideration by the administration will run monthly.
Article 8. DIRECTIVE COMMITEE. Cotton Development Fund shall have a Steering Committee, made up as follows:
1. The Minister of Agriculture and Rural Development or his delegate, who will preside.
2. The Minister of Foreign Trade or his delegate.
3. The Director of the Colombian Agricultural Research Corporation, Corpoica.
4. The General Manager of the Colombian Agricultural Institute, ICA.
5. The Chairman of the Board of Directors of the managing entity.
6. Four (4) representatives of the cotton trade associations, chosen by the Minister of Agriculture and Rural Development, paths lists submitted by their respective guilds.
7. Effective Jurisprudence
8. A representative of the Association of Textile, ASCOLTEX, elected by the board.
9. The Executive President of the National Cotton Distribuidora, Diagonal. PARAGRAPH 1.
. The Executive Chairman of the managing entity shall assist the Steering Committee with voice but no vote. PARAGRAPH 2.
. In case of merger, dissolution or subdivision of current cotton trade associations, the National Government will determine the proportion of representation of different organizations, to ensure the representativeness of domestic producers of cotton. Likewise, the Government may, by maintaining a minimum of two (2) and a maximum equal to the representatives of cotton producers, vary the representation of textileros to match the proportion of their contributions to the Fund.
Article 9. FUNCTIONS OF THE STEERING COMMITTEE. The Steering Committee of the Fund shall have the following features:
1. To provide general policies to ensure compliance with the aims and objectives of the Fund by setting priorities for the short, medium and long term.
2. Approve programs and projects for each annuity, presented by the managing entity, with the favorable vote of the Minister of Agriculture and Rural Development or his delegate,
three. Approve the annual budget of income and expenses of the Fund by the administering entity, with the favorable vote of the Minister of Agriculture and Rural Development or his delegate.
4. Approve contracts of association, finacing, or any other, that to fulfill the aims and objectives of the Fund, proposes to make the entity administering the affirmative vote of the Minister of Agriculture and Rural Development or his delegate.
5. Ensure proper and efficient management of the Fund by the management entity.
6. To ensure that the Fund's resources are shared equitably by region, according to the revenues without harming programs and projects basic or specialized national benefit research.
7. Approve Investment and Expenditure Plan presented by the managing entity of the Fund with the favorable vote of the Minister of Agriculture and Rural Development or his delegate.
8. The others that are inherent as the highest governing body of the Fund, those assigned to the National Government in the special contract administration and collection Fund quota and establish the laws and regulations in force.
PARÁGRAFO. If the Government decides to contract management Stabilization Fund cotton prices with the same entity administering the Development Fund Algodonero, each will retain its own Steering Committee and various special accounts so that their resources and heritage are not confused with each other or with those of the managing entity.
ARTICLE 10. INVESTMENT PLAN AND EXPENSES. The managing entity, based on the guidelines of the Steering Committee before 1 draw. October, the Investment Plan and Expenditure for the following financial year.
ARTICLE 11. INCOME FUND AND HERITAGE. Revenues Cotton Development Fund and heritage that are formed by these special funds in the managing entity shall be:
1. The product of cotton promotion quotas.
2. Yields for the management of its resources, including financial ones.
3. Derivatives transactions, contracts and agreements.
4. The proceeds of the sale or liquidation of its assets and investments.
5. Credit resources.
6. Investments, contributions and donations received.
7. The proceeds of fines and penalties.
PARÁGRAFO. The resources of the Development Fund Algodonero not part of the General Budget of the Nation and may only be used for specific purposes specified in this Act.
ARTICLE 12. OTHER RESOURCES FUND. The Development Fund Algodonero may receive and channel resources from internal and external credit entered into by the Ministry of Agriculture and Rural Development, aimed at meeting the objectives that sets this Law, as well as contributions and investments of the National Treasury and individuals or corporations, domestic or foreign, for the same purpose.
ARTICLE 13. EFFECTIVE REVENUES. So you can share levied cotton promotion, established by this Act, it is necessary that the contract between the National Government and the Administrator of the Fund is in effect.
ARTICLE 14. FISCAL CONTROL. Subsequent Fiscal Control on investment of Cotton Development Fund, will be exercised by the Comptroller General of the Republic, in accordance with current legal rules and applicable regulations appropriate to the nature of the Fund and administering body.
ARTICLE 15. ADMINISTRATIVE OVERSIGHT. The Ministry of Agriculture and Rural Development will follow up and evaluation of programs and projects, for which the entity administering the Development Fund Algodonero shall file semi-annual report regarding the resources obtained and investment.
This report should be submitted twice a year by the Administrator to the entire cotton sector.
With the same frequency, the managing entity sends to the General Treasury of the Republic a report on the amount of resources of the fees collected in the previous six months, without prejudice to both the Ministry of Agriculture and Rural Development as Treasury to investigate such reports in the books and other documents on the Fund maintains the managing entity.
ARTICLE 16. COST REDUCTIONS. To natural or legal persons required to withhold and turn the Fund's share of cotton promotion, they have the right to be accepted as deductible expenses values purchases or own fiber production and cottonseed during the respective year taxable, they must accompany his declaration of income and wealth Certificate Except for Peace and concept of retained and turned to the Fund, issued by the entity administering the same. Same certificate must accompany his declaration of income and assets of natural and legal persons required to pay the fee of cotton promotion, to be entitled to deduct as an expense the value of contributions to the Fund for the payment of fees cotton promotion, in the respective tax year.
ARTICLE 17. PENALTIES A TAXPAYER AND COLLECTORS. The entity administering the Development Fund Algodonero may sue for enforcement proceedings before the ordinary courts payment of the fee cotton promotion.
To this effect, the legal representative of the administrative entity shall, in accordance with the information you supply the Ministry of Finance and Public Credit, the certificate which establishes the amount of the debt and its enforceability. PARAGRAPH 1.
. The collector algodonero share promotion that not timely transfer agency administrator, pays interest on arrears at the rate indicated for defaulters of income tax and complementary.
. The national government will impose for Cotton Development Fund fines and penalties that apply for the default or the fraud in the collection and allocation of the quota of cotton promotion, without prejudice to the criminal and civil actions that may be required.
ARTICLE 18 EXPIRY OF MANAGEMENT AGREEMENT. The national government may cancel the management contract when the circumstances contemplated in the contract and in this case may contract the administration of the Fund, as appropriate, with other most representative professional association or a trust company.
ARTICLE 19. LIQUIDATION OF THE FUND. Cotton Development Fund will be liquidated in the following cases:
1. When a new law repealed share algodonero promotion and Fund does not have enough to continue to meet the objectives for which it was created own resources.
2. When motivated opinion of the Minister of Agriculture and Rural Development previous concept of the Steering Committee are not meeting the objectives of the Fund.
3. When in the opinion of most members of the Steering Committee are not being met the objectives of the Fund or domestic production has decreased to the point that the effort is not justified by reactivating, by investing the Fund's resources in research, transfer technology and training. Determined
liquidation of the Fund, the rules on liquidation under the Commercial Code apply to societies. The Ministry of Agriculture and Rural Development will act as liquidator directly or through a trust company and, in any case, the assets and remaining assets of the liquidation, if any, will be delivered by the Ministry of Agriculture and Rural Development to an entity public, private or mixed with the sole purpose of investing in the same objectives set out in this Act for the Cotton Development Fund.
ARTICLE 20 OF THE EFFECTIVENESS OF THE LAW. This Act shall come into force from its promulgation.
The President of the honorable Senate, JULIUS CAESAR
The Secretary General of the honorable Senate,
PUMAREJO PEDRO VEGA.
The President of the honorable House of Representatives,
Rodrigo Rivera Salazar.
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
REPUBLIC OF COLOMBIA - NATIONAL GOVERNMENT
published and execute.
Given in Bogota, DC 30 November 1995.
Ernesto Samper Pizano Minister of Finance and Public Credit, WILLIAM PERRY RUBIO
The Minister of Foreign Trade,
DANIEL GOMEZ mazuera.
The Minister of Agriculture and Rural Development, CASTRO GUERRERO GUSTAVO