Official Journal No. 42.130 of 30 November 1995
For which the quota of cotton promotion is established, a Fomento Fund is created and rules are given for its collection and administration.
THE CONGRESS OF COLOMBIA,
ARTICLE 1o. for the purposes of this Law, it is recognized by agricultural industry that cotton is the agricultural activity that has as its object the cultivation and harvesting of the seed cotton and the benefit and processing of its fruits until obtaining: fibre, seed and yarn of cotton.
ARTICLE 2o. COTTON PROMOTION QUOTA. Set the cotton promotion quota, as a contribution of a fiscal character, which will be the equivalent of to half percent (0.5%) of the value of Each kilogram of cotton fibre of national production put in ginning; at one per cent (1%) of the value of each kilogram of cotton seed of national production put in ginning; half a percentage (0.5%) of the value on board in port origin (FOB) of each kilogram of imported cotton fibre, the zero point twenty-five per (0,25%) of the value in port of origin (FOB) of each kilogram of cotton yarn imported into the country and zero point 25% (0.25%) of the value in port of origin (FOB) of each kilogram of cotton fibre contained in yarn with a mixture of other fibres, which is imported into the country.
PARAGRAFO. For the purposes of the contribution on the value of the cotton content of the yarns with fibre mixtures, imported, this value is presumed to be directly proportional to the percentage of fibre cotton in the mixture, according to the tariff position and description of the goods in the respective import register
ARTICLE 3o. COTTON PROMOTION FUND. Create the Algodonero Development Fund for the management of resources from the collection of the cotton promotion quota and the heritage formed by these funds, which will adhere to the sectoral policy guidelines. of the Ministry of Agriculture and Rural Development. The managing body is required to manage the Fund's resources in separate accounts so that it is not confused with the resources and assets of that institution.
ARTICLE 4. QUOTA SUBJECTS. Any natural or legal person who produces in the national territory fiber and seed of cotton or amount of fiber or yarn of cotton or with a mixture of cotton is required to pay the Algodonero Promotion fee.
ARTICLE 5o. HOLDING AGENTS AND QUOTA PAYMENTS. Any natural or legal person who purchases national cotton fiber or seed, or amount of cotton or yarn of cotton or mixed cotton, either for domestic consumption or for export, is required to retain the value of the cotton promotion quota at the time of making the corresponding payment.
The retainer agent will maintain the value of all the shares held within the respective calendar month in a separate account and is obliged to deposit them in the special account of the Algodonero Development Fund within the first half of the month next, through the entity contracted for its administration.
PARAGRAFO. In case of a purchase of a purchase or import in several counted, the retention will be made proportionally to each partial payment.
ARTICLE 6o. GOALS. The resources of the Algodonero Development Fund will be used exclusively in:
1. Support research and technology transfer programs and projects aimed at the sustainable development of cotton production in the country.
2. Support programmes and projects aimed at improving efficiency and efficiency in production, increasing productivity, reducing costs, improving the quality of fibre and national seeds and, in general, recovering and maintaining competitiveness.
3. Support research and technology transfer programmes and projects aimed at making the collection, analysis and dissemination of relevant and useful information on technological advances for production and desmote more efficient and effective. cotton, fibre and seed.
4. Support training projects in the various areas related to production, desmote and fiber processing technologies and cotton seed.
PARAGRAFO 1o. For the achievement of these purposes, the managing entity may advance the various programmes and projects directly or through contracts or association agreements, or in co-financing with natural persons or public, private or mixed legal entities, national or foreign, as well as affiliation to entities or networks of information.
PARAGRAFO 2o. The administrative entity of the Algodonero Fund should take into account the medium and small producers to achieve the objectives of this Law.
PARAGRAFO 3o. The resources of the Algodonero Development Fund should be administered in accordance with the principles of frugality, economy, responsibility and transparency.
ARTICLE 7o. The National Government, through the Minister of Agriculture and Rural Development, will contract with the Administration of the Algodonero Development Fund and the collection of the quota with a non-governmental organization. It is a sufficiently representative of the cotton producers at national level.
PARAGRAFO. The respective administrative contract will last ten (10) years, and in it will be available regarding the management of the resources, the definition and execution of programs and projects, the faculties and prohibitions of the entity the administrator and the other requirements and conditions that are required for the fulfilment of the legal and contractual purposes and objectives. The consideration for the administration of the Fund shall be fixed annually by the Steering Committee of the Fund, with the favourable vote of the Ministry of Agriculture, taking into account the budget of each fiscal year, with a maximum ceiling of 10 percent. (10%) of annual revenue collections (10%). This consideration by the administration will be executed on a monthly basis.
ARTICLE 8o. A STEERING COMMITTEE. The Algodonero Development Fund will have a Steering Committee, conformed as follows:
1. The Minister of Agriculture and Rural Development or his Delegate, who will preside over it.
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 body.
6. Four (4) representatives of the cotton guild entities, chosen by the Minister of Agriculture and Rural Development, of the third countries submitted by their respective agencies.
8. A representative of the Textile Products Association, Ascoltex, elected by its board of directors.
9. The Executive Chairman of the National Cotton Distributor, Diagonal.
PARAGRAFO 1o. The Executive Chairman of the managing entity will assist the Steering Committee with a voice, but no vote.
PARAGRAFO 2o. In case of merger, dissolution or subdivision of the current cotton guild entities, the National Government will determine the proportion of the representation of the different organizations, to guarantee the representativeness of the national cotton producers. In addition, the National Government will be able to maintain a minimum of two (2) and a maximum equal to the representatives of the cotton producers, to vary the representation of the textileros to adjust it to the proportion of their contributions to the Fund.
ARTICLE 9o. FUNCTIONS OF THE STEERING COMMITTEE. The Steering Committee of the Fund shall have the following functions:
1. Outline general policies to ensure compliance with the Fund's objectives and objectives, establishing short, medium and long-term priorities.
2. Approve the programmes and projects for each annuity, presented by the managing body, with the favourable vote of the Minister of Agriculture and Rural Development or his Delegate,
3. Approve the annual revenue and expenditure budget of the Fund presented by the managing body, with the favourable vote of the Minister of Agriculture and Rural Development or his Delegate.
4. Approve the contracts of association, financing, or any other type, which, in order to meet the objectives and objectives of the Fund, propose to hold the managing body with the favourable vote of the Minister of Agriculture and Development Rural or its Delegate.
5. Ensure the correct and efficient management of the Fund by the managing body.
6. Ensure that the resources of the Fund are distributed equally by region, in accordance with the funds collected, without prejudice to basic or specialized research programmes and projects of national benefit.
7. Approve the Investment and Expenditure Plan presented by the Fund's managing body with the favorable vote of the Minister of Agriculture and Rural Development or his Delegate.
8. The other members of the Fund shall be assigned to it by the National Government in the special contract of administration of the Fund and collected from the quota and those that establish the laws and regulations in force.
PARAGRAFO. In case the National Government decides to contract the administration of the Cotton Price Stabilization Fund with the same entity that the Algodonero Development Fund manages, each of them will retain its own Steering Committee and different special accounts in such a way that their resources and assets are not confused with each other, nor with those of the managing body.
ARTICLE 10. INVESTMENT AND EXPENDITURE PLAN. The managing body, on the basis of the guidelines of the Steering Committee, shall draw up before 1o. October, the Investment and Expenditure Plan for the next annual financial year.
ARTICLE 11. INCOME AND EQUITY OF THE FUND. The income of the Algodonero Development Fund and the assets formed by those who constitute special funds in the managing entity shall be as follows:
1. The product of cotton promotion quotas.
2. The returns for the management of its resources, including the financial ones.
3. Derivatives of transactions, contracts and agreements.
4. The proceeds of the sale or liquidation of its assets and investments.
5. The resources of the credit.
6. The investments, contributions and donations you receive.
7. The product of fines and penalties.
PARAGRAFO. The resources of the Algodonero Development Fund are not part of the General Budget of the Nation and can only be used for the specific purposes mentioned in this Law.
ARTICLE 12. OTHER RESOURCES OF THE FUND. The Algodonero Development Fund will be able to receive and channel internal and external credit resources that the Ministry of Agriculture and Rural Development will sign, aimed at meeting the objectives set out in this document. Law, as well as contributions and investments from the National Treasury and natural or legal persons, national or foreign, for this very purpose.
ARTICLE 13. order to collect the cotton promotion quota, established by this Law, it is necessary that the contract between the National Government and the Fund's Managing Entity be in effect.
ARTICLE 14. FISCAL CONTROL. The subsequent Fiscal Control on the investment of the Algodonero Development Fund, will be exercised by the Comptroller General of the Republic, in accordance with the applicable legal norms and corresponding regulations appropriate to the nature of the Fund and its administrative body.
ARTICLE 15. ADMINISTRATIVE SURVEILLANCE. The Ministry of Agriculture and Rural Development will follow up and evaluate the programs and projects, for which the managing body of the Algodonero Development Fund, will be required to submit a semi-annual report with relationship to the resources obtained and their investment.
This report should be submitted semi-annually by the Managing Entity to the entire cotton sector.
With the same frequency, the managing entity will send to the General Treasury of the Republic a report on the amount of the resources of the quotas collected in the previous semester, without prejudice to the fact that both the Ministry of Agriculture and Rural Development as the Treasury can inquire about such reports in the books and other documents that the Fund keeps the managing entity.
ARTICLE 16. COST DEDUCTIONS. For natural or legal persons forced to retain and rotate the cotton promotion quota to the Fund, they have the right to be accepted as deductible costs for the purchase or production of their own production. fibre and seed of cotton during the respective taxable year, must accompany their declaration of income and patrimony a Certificate of Peace and Salvo by concept of the retained and rotated to the Fund, issued by the managing entity of the same. The same certificate must accompany your declaration of income and patrimony the natural and legal persons obliged to pay the quota of cotton promotion, in order to have the right to deduct the value of the contributions to the Fund, by concept payment of cotton promotion quotas, in the respective taxable year.
ARTICLE 17. SANCTIONS AGAINST TAXPAYERS AND COLLECTORS. The managing body of the Algodonero Development Fund, will be able to file the payment of the cotton promotion fee by executive branch in the ordinary jurisdiction.
To this effect, the legal representative of the managing body will issue, according to the information provided by the Ministry of Finance and Public Credit, the certificate in which the amount of the debt and its enforceability are recorded.
PARAGRAFO 1o. The collector of the cotton promotion quota that does not transfer it in a timely manner to the managing body, will pay arrears interest at the rate indicated for the delinquent debtors of the income tax and complementary.
PARAGRAFO 2o. The National Government will impose fines and penalties on the Algodonero Fomento Fund, which correspond to the arrears or the fraud in the collection and consignation of the cotton promotion quota, without prejudice to the criminal and civil actions to be taken.
ARTICLE 18. EXPIRATION OF THE ADMINISTRATION CONTRACT. The National Government may declare the expiration of the administrative contract when the circumstances provided for in the contract itself are presented and in this case it may contract the Fund Administration, as the case may be, with another business entity of greater representativeness or a trust company.
ARTICLE 19. SETTLEMENT OF THE FUND. The Algodonero Development Fund will be settled in the following cases:
1. When a new law repeals the quota of cotton promotion and the Fund does not have sufficient own resources to continue to fulfill the objectives for which it was created.
2. In the case of the Minister of Agriculture and Rural Development prior to the Steering Committee, the objectives of the Fund are not being met.
3. Where the majority of the members of the Steering Committee are not in compliance with the objectives of the Fund or the national production has decreased to the extent that the effort to reactivate it is not justified, by means of the investment of the resources of the Fund in research, technology transfer and training.
Determined the liquidation of the Fund, the rules on liquidation provided for in the Code of Commerce for the companies will apply. The Ministry of Agriculture and Rural Development shall act as liquidator directly or through a trust company and, in any event, the assets and resources remaining in the liquidation, if any, shall be delivered by the Ministry of Agriculture. Agriculture and Rural Development to a public, private or mixed entity with the exclusive purpose of investing them in the same objectives set out in this Law for the Algodonero Development Fund.
ARTICLE 20. " OF THE VALIDITY OF THE LAW. This Law shall enter into force upon its promulgation.
The President of the honorable Senate of the Republic,
JULIO CESAR GUERRA.
The Secretary General of the honorable Senate of the Republic,
PEDRO PUMAREJO VEGA.
The President of the honorable House of Representatives,
RODRIGO RIVERA SALAZAR.
The Secretary General of the honorable House of Representatives,
DIEGO VIVAS TAFUR.
Publish and execute.
Dada en Santafe de Bogota, D. C. at 30 November 1995.
ERNESTO SAMPER PIZANO
The Minister of Finance and Public Credit,
GUILLERMO PERRY RUBIO.
The Minister of Foreign Trade,
DANIEL MAZUERA GOMEZ.
The Minister of Agriculture and Rural Development,
GUSTAVO CASTRO GUERRERO