1999 ACT 534

(November 11)

Official Journal No 43,784 of 16 November 1999

COLOMBIA CONGRESS

For which the Development Fee for Modernization and Diversification of the Tabacalero Subsector is established and other provisions are dictated.

DECRETA:

ARTICLE 1o. THE TOBACCO SUBSECTOR. For the purposes of this law, it is recognized as a tobacco subsector the agricultural activity that has as its object the cultivation, collection and benefit of the tobacco leaf.

ARTICLE 2o. FROM THE CUOTA. Set up the Development Fee for Modernization and Diversification of the Tabacalero Subsector, as a parafiscal contribution whose perception will be assigned to the special account called the National Tobacco Fund.

ARTICLE 3o. FROM THE NATIONAL TOBACCO FUND. Create the National Tobacco Fund for the management of resources from the collection of the Cuota for the modernization and diversification of the tobacco sector, and which will adhere to the policy guidelines. of the Ministry of Agriculture and Rural Development for the development of the agricultural sector. The product of the Fomento Cuota will be taken to a special account under the name of National Tobacco Fund with exclusive destination to meet the objectives set out in this law.

ARTICLE 4. Of the QUOTA SUBJECTS. All natural or legal persons who cultivate or export tobacco, are the subject of the Development Fee for Modernization and Diversification of the Tabacalero Subsector.

ARTICLE 5o. PERCENTAGE OF THE QUOTA. From the Development Fee for Modernization and Diversification of the Tabacalero Subsector, it will be 2% of the price of each kilogram of tobacco in national production.

ARTICLE 6o. OF THE QUOTA RETENTION AND PAYMENT. They are retainers of the Development Fee for Modernization and Diversification of the Tabacalero Subsector, tobacco leaf processing companies, tobacco leaf exporters, and merchants. particular buyers of the tobacco leaf.

PARAGRAFO. The retainer must record the holds held in separate accounts in its accounting and must record the quota monies in the National Tobacco Fund's national account, within the first The next calendar month of the retention.

ARTICLE 7o. PURPOSE OF THE QUOTA. The proceeds of the Development Fee for Modernization and Diversification of the Tabacalero Subsector will be applied in obtaining the following purposes:

a) Investment in complementary physical and social infrastructure in tobacco areas, such as small irrigation systems, water reservoirs, rural electrification, rural housing improvement, rural aqueducts;

b) Promotion of dual-track cooperatives, collection centres, the social object of which is to benefit tobacco producers and producers ' organisations;

c) Research, technical assistance, technology transfer and training of tobacco producers, for the modernization and diversification of the crop;

d) Programs to modernize and diversify production in a tobacco area;

e) Support for reforestation and micro-watershed protection programmes in tobacco areas;

(f) Support for the marketing of tobacco and other products of peasant economy in tobacco areas;

g) Other projects which by suggestion and convenience, tobacco producers through their organizations create necessary for the improvement of the standard of living of tobacco growers, after approval by the Ministry of Agriculture and Rural Development.

ARTICLE 8o. . The National Government, through the Ministry of Agriculture and Rural Development, will contract with the National Federation of Tobacco Producers, Fedetobacco, or in its absence with another non-profit entity, the representative representative. The Tabacalero Sector at the National Level, the Administration of the National Tobacco Fund, and the collection of the Development Fee for Modernization and Diversification of the Tabacalero Subsector.

PARAGRAFO. The administration contract will have a duration of five (5) years extendable and in it will have the relative to the management of the resources, the definition and execution of programs and projects, the faculties and prohibitions of the managing body and other requirements and conditions required for the fulfilment of the legal objectives, as well as the consideration of the administration of the quota, the value of which shall be 12% (12%) of the collection. The consideration of the administration of the quota will be caused monthly.

ARTICLE 9o. National Tobacco Fund will have a Steering Committee composed of the Minister of Agriculture and Rural Development or his Delegate who will chair them, two (2) representatives of the Ministry of Agriculture and Rural Development, four (4) representatives of Fedetobacco or its affiliated organizations and one (1) representative of the Association of Peasant Users, ANUC. The Ministry of Agriculture will designate it as a third party sent by the respective association.

PARAGRAFO. The representatives of the tobacco producers will be appointed by the General Assembly of Fedetobacco, giving representation to all the tobacco areas of the country following the procedure outlined in the article 43 of Law 188 of 1995, for a period of two (2) years and may be re-elected.

ARTICLE 10. FUNCTIONS OF THE STEERING COMMITTEE. The Steering Committee of the Fund shall have the following functions:

(a) Approve the annual revenue and expenditure budget of the Fund presented by Fedetobacco, after having been approved by the Ministry of Agriculture and Rural Development;

b) Approve the investments that Fedetobacco and its affiliated regional organizations must carry out with resources from the Fund;

c) Approve programs and projects to be funded by the Fund;

d) To ensure the proper and efficient management of the Fund by Fedetobacco.

ARTICLE 11. FROM THE BUDGET OF THE FEDEtobacco FUND. Based on the programmes and projects approved by the Fund's Steering Committee, it shall draw up before 1o. October, the Investment and Expenditure Plan for the next annual financial year. This Plan may only be implemented after approval of the Fund's Steering Committee.

ARTICLE 12. OTHER RESOURCES OF THE FUND. The National Tobacco Fund may receive and channel internal and external credit resources that the Ministry of Agriculture and Rural Development subscribes to meet the objectives set out in this Fund. law, as well as contributions and investments by the National Treasury and natural or legal persons, both domestic and foreign, for the same purpose.

ARTICLE 13. CRITERIA FOR THE ALLOCATION OF RESOURCES. The allocation of the resources of the tobacco regions shall be proportional to the collection of the parafiscal quota in each of them and shall be applied in a concerted manner with the guild taking into account criteria such as the following:

a) The origin of the quota by zone and by concept;

(b) Special attention to be paid to regions that are fundamentally dependent on tobacco cultivation;

c) The number of producers who will benefit from the program;

d) Support to be provided to small producers;

e) The impact each program will have on the economic and social development of the producer and his family.

ARTICLE 14. " OF THE FISCAL CONTROL. The subsequent fiscal control over the investment of the resources of the National Tobacco Fund, will be exercised by the Comptroller General of the Republic in accordance with the corresponding rules and regulations, appropriate to the nature of the Fund and its administrative body.

ARTICLE 15. DEDUCTION OF COSTS. For natural or legal persons holding the quota to have the right to accept the costs and deductions for the purchases that result in the collection of the Cuota de la Cuota in their income statement. Promotion for the Modernization and Diversification of the Tabacalero Subsector, they must be at peace and except for the Cuota, for the effect they will have to keep in their accounts the documents that prove the retention and payment of the quota and the Certificate issued by the Administrator of the National Tobacco Fund.

ARTICLE 16. SANCTIONS IN CHARGE OF THE SUBJECT AND THE RETAINER. The National Government shall impose fines and penalties on the subjects of the Cuota and the retainers, who fail to comply with their obligations in this matter in accordance with the rules of the Tax Statute that they are applicable.

ARTICLE 17. INSPECTION AND SURVEILLANCE. The Fund's managing body and the collection of the quota may carry out inspection visits to the accounting books of natural and legal persons holding the quota, as the case may be. the due payment of the incentive fee provided for in this law.

ARTICLE 18. ABOLITION OF THE FUND ' S QUOTA AND LIQUIDATION. The resources of the National Tobacco Fund at the time of its liquidation will be carried out by the Ministry of Agriculture and Rural Development and its administration must be contracted by the Ministry with an agricultural sector entity that guarantees its use in support programs and defense of the tobacco subsector.

ARTICLE 19. " OF THE VALIDITY OF THE LAW. This law shall enter into force on the basis of its sanction.

The President of the honorable Senate of the Republic,

MIGUEL PINEDO VIDAL.

The Secretary General of the honorable Senate of the Republic,

MANUEL ENRIQUEZ ROSERO.

The President of the honorable House of Representatives,

ARMANDO POMARICO RAMOS.

The Secretary General of the honorable House of Representatives,

GUSTAVO BUSTAMANTE MORATTO.

COLOMBIA-NATIONAL GOVERNMENT

Publish and execute.

Dada en Santa Fe de Bogotá, D. C., on 11 November 1999.

ANDRES PASTRANA ARANGO

The Minister of Finance and Public Credit,

JUAN CAMILO RESTREPO SALAZAR.

The Minister of Agriculture and Rural Development,

RODRIGO VILLALBA MOSQUERA.