ACT

(March 14)

Official Journal No 42,746 of 18 March 1996

COLOMBIA CONGRESS

For which the pig promotion quota is created and rules on its collection and administration are dictated

DECRETA:

ARTICLE 1o. OF THE PORCINE SECTOR. The culture is constituted by the activities of production of breeding (genetic farms) and commercial production of piglets and pigs for the supply of the market of fresh meat and meat industry specialised.

ARTICLE 2o. OF THE SHARE OF PORCIcola PROMOTION. 1 of Law 1500 of 2011. The new text is as follows: > From the validity of this law, create the Porcicola Development Fee, which will be constituted by the equivalent of thirty-two percent (32%) of a legal minimum daily wage in force, for each pig, at the time of slaughter.

ARTICLE 3o. THE PARAFISCAL CONTRIBUTION. The parafiscal contribution for the promotion of the pig sector shall be limited to the conditions stipulated in this Law, in the terms of Article 150 (12) of the National Constitution, Chapter V of the Law 101 of 1993, and other principles and rules governing the matter.

ARTICLE 4. FROM THE NATIONAL CULTURAL FUND. Create the National Porcicultura Fund, for the management of resources from the collection of the Porcicola Development Fee, which will be based on the guidelines of the Ministry's sectoral policy. Agriculture and Rural Development for the pork sector.

The product of the Porcicola Development Fee, will be taken to a special account, under the name of National Porcicultura Fund, with exclusive destination to meet the objectives set forth in this Law.

Pork producers, whether natural persons, legal entities or companies in fact, marketers and importers of pork, will be obliged to pay the Porcino Development Fee

ARTICLE 5o. OF THE OBJECTIVES OF THE NATIONAL CULTURE FUND. The resources of the National Porciculture Fund shall be used exclusively in:

1.-Research in Porcicultura, technical assistance, technology transfer and training Paragafo improve the health and increase the productivity of the pig activity, as well as to obtain a sacrifice in sanitary conditions.

2. Support and encourage the export of pigs, pork and their by-products.

3.-Participate with capital contributions in companies of collective interest dedicated to the production, marketing and industrialization of inputs and products of the pork sector.

4.-The promotion of cooperatives of pig farmers whose purpose is to benefit producers and consumers.

5.-The organization of industries with efficient marketing systems that allows, in certain cases, to subsidize the prices of pork for low-income consumers.

6.-Economic, social and infrastructure programs for the benefit of the pig activity.

7.-Those programs that have been approved by the Board of Directors of the National Porcicultura Fund, will seek to promote the National Porciculture and the regulation of the prices of its products.

ARTICLE 6o. OF THE BOARD OF DIRECTIVE. The Board of Directors of the National Porcicultura Fund will be formed as follows:

1.-The Minister of Agriculture or his delegate who will preside.

2.-The Minister of Economic Development or his delegate.

3.-The Minister of Foreign Trade or his delegate.

4.-Three (3) representatives elected by the Colombian Association of Porcicultors, ACP.

5.-One (1) representative for the cooperatives of pig farmers operating in the country.

PARAGRAFO. The Government will regulate the choice of private sector representatives.

ARTICLE 7o. FROM THE COLLECTION. The collection of the Porcicola Fomento Cuota indicated in Article 2, shall be made by natural or legal persons and the societies in fact, which perform the slaughter of pigs. The quota shall be collected at the time of the deguello, and in those places where there is no slaughterhouse the collection shall be made by the municipal treasury at the time of issuing the guide or permit for slaughter.

PARAGRAFO. The quota collectors will provisionally hold those resources in a separate account, and are required to deposit them within ten (10) days of the month following the month of the collection, in the account special "National Porciculture Fund", managed by the managing body. According to Law 6a. Article 114, the auditor of the National Porcicultura Fund, may carry out inspection visits to the books of accounts of the companies and collecting entities with prior approval from the Ministry of Finance and Public Credit, to ensure the due payment of the Fomento Fee provided for in this Law.

ARTICLE 8o. THE ADMINISTRATION. The National Government through the Ministry of Agriculture and Rural Development, will contract with the Colombian Association of Porcicultors, ACP, the administration and the final collection of the resources of the National Fund of the Porcicultura.

The respective administrative contract will have a duration of ten 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 managing entity and others requirements and conditions which are required for the fulfilment of the legal objectives, as well as the consideration for the administration of the quotas, the value of which shall be up to 10% (10%) of the annual collection.

PARAGRAFO 1o. In case of dissolution, inability and incompatibility of the Colombian Association of Porcicultors, ACP, the Minister of Agriculture and Rural Development may contract the administration of the A public entity or a non-profit organisation representing the producers of the national pig producers.

PARAGRAFO 2o. The Board of Directors of the National Porcicultura Fund may approve subcontracts of specific plans, programs and projects with other agremiations and cooperatives of the porcicola sector, which will present the administration of the Fund or any of the members of the Board of Directors.

ARTICLE 9o. OF THE INVESTMENT AND EXPENDITURE PLAN. The institution managing the resources of the National Porcicultura Fund shall draw up the investment and expenditure plan for the following year, which may only be executed once it has been approved by the Board of the same fund, with the favorable vote of the Ministry of Agriculture.

The resources of the National Porcicultura Fund will be used to develop programs and projects in Porcicultura, in proportion to the contributions made by the different production zones.

ARTICLE 10. OF THE ASSETS OF THE NATIONAL CULTURAL FUND. The assets that are acquired with the resources of the National Porciculture Fund shall be incorporated into a special account.

In each transaction, it must be established that the asset acquired is part of the fund, in the manner that in case it is liquely, all the bines including the funds of the Fund that are in cash or banks, once the funds are cancelled liabilities, are made available to the National Government, in accordance with those provided for in Article 9o., Paragraph 1. of this Law.

ARTICLE 11. order to collect the Porcicola Development quotas established by this Law, it is necessary that the contract between the National Government and the managing entity be in effect.

ARTICLE 12. FROM ADMINISTRATIVE SURVEILLANCE. The Minister of Agriculture and Rural Development will follow up and evaluate the programs and projects, for which the managing body of the National Porcicultura Fund, must be held semi-annually. reports on the resources obtained and their investment. At the same intervals, the managing body shall send to the General Treasury of the Republic a report on the amount of the resources of the quotas collected in the previous six months, 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 on the fund save the managing entity.

ARTICLE 13. " OF THE FISCAL CONTROL. The managing body of the National Porcicultura Fund, will be accountable to the Comptroller General of the Republic, on the investment of the resources. For the exercise of the tax control referred to, the Comptroller shall adopt appropriate systems.

ARTICLE 14. OF THE FINES AND PENALTIES. The National Government will be able to impose fines and penalties for the arrears or the fraud in the collection and consignation of the Porcicola Development Fee provided for in this Law, without prejudice to the criminal and civil actions to which place.

ARTICLE 15. DEDUCTIBLE COSTS. For natural or legal persons obliged to tax the Porcicola Development Fee, they have the right to be accepted as deductible costs for the value contributed to that quota, during the respective taxable year, they must accompany their declaration of income and heritage with a certificate of peace and save for that value, issued by the collector.

ARTICLE 16. The National Porciculture Fund will be able to receive and channel external credit resources that the Ministry of Agriculture and Rural Development has signed, aimed at meeting the objectives of the Fund, as well as contributions and investments from the national treasury, or natural or legal persons, national or foreign, with this same purpose.

ARTICLE 17. This Law governs from the date of its publication and repeals any other provisions that are contrary to it.

JULIO CESAR GUERRA TULENA

The President of the honorable Senate of the Republic

PEDRO PUMAREJO VEGA

The Secretary General of the honorable Senate of the Republic

RODRIGO RIVERA SALAZAR

The President of the Honourable House of Representatives

DIEGO VIVAS TAFUR

The Secretary General of the Honourable House of Representatives

COLOMBIA-NATIONAL GOVERNMENT

PUBLISH AND EXECUTE

Dado en Santafe de Bogota, D.C., a 14 de marzo de 1996

ERNESTO SAMPER PIZANO

GUILLERMO PERRY RUBIO

The Minister of Finance and Public Credit

CECILIA LOPEZ MONTANO

The Minister of Agriculture and Rural Development

RODRIGO MARIN BERNAL

The Minister of Economic Development

MORRIS HARF MEYER

The Minister of Foreign Trade