LAW 681 OF 2001

(August 9)

Official Journal No. 44.515 of 10 August 2001

By which the regime of fuel concessions in the border areas is modified and other tax provisions are established for fuels.

COLOMBIA CONGRESS

DECRETA:

ARTICLE 1o. Modify Article 19 of Act 191 of 1995 as follows:

" Article 19. In the departments and municipalities located in border areas, prior to the approval of the Ministry of Mines and Energy, Ecopetrol will have the function of distribution of liquid fuels derived from petroleum.

the development of this function, Ecopetrol will be responsible for the distribution of fuels in the given territories, either by importing fuels from the neighboring country or by supplying fuel produced in Colombia. The maximum volume to be distributed by Ecopetrol in each municipality, will be the one established by the Energy Mining Planning Unit, UPME, Ecopetrol will be able to assign or hire, totally or partially, with the recognized wholesale distributors and registered as such by the Ministry of Mines and Energy or with third parties previously approved and registered by the Ministry of Mines and Energy the import, transport, storage, distribution or sale of fuels. The operation of Ecopetrol will be made in a cost-effective manner and will guarantee the recovery of the costs incurred.

The fuel transport contracts that Ecopetrol will hold with wholesale distributors, with retail distributors, or with third parties registered and authorized for such purposes by the Ministry of Mines and Energy will have to establish express the obligation of distributors and third parties to deliver the fuel directly at each service station or at the facilities of the large consumers located in the border areas, taking into account the quotas allocated to the same by the competent authority.

Oil-derived liquid fuels distributed by Ecopetrol in the border areas, directly or through the disposals or procurements referred to in the second paragraph of this article, will be exempt from duty taxes, VAT and global tax.

PARAGRAFO 1o. As of the entry into force of this law, the conclusion, execution and development of concession contracts for the distribution of fuels in border areas and/or special border development units, with third parties other than the Colombian Petroleum Enterprise, Ecopetrol.

PARAGRAFO 2o. Repeal article 100 of Law 488 of 1998.

PARAGRAFO 3o. Contracts concluded prior to the entry into force of this law must conform to the provisions of this law.

PARAGRAFO 4o. Repeal article 86 of Law 633 of 2000.

PARAGRAFO 5o. Prohibited the production, import, marketing, distribution, sale and consumption of leaded motor gasoline in the national territory, except for the area currently served by the refinery Orito, Putumayo, after regulations that the government will make.

ARTICLE 2o. Modify the paragraph of article 58 of Act 223 of 1995 as follows:

" Paragraph 1o. For all the purposes of this law, ACPM, motor fuel oil, marine or river diesel, marine diesel, gas oil, intersol, diesel number 2, electrofuel or any medium distillate and/or binding oils are understood to be the same. For their chemical physical properties as well as for their performances in high-rev engines, they can be used as automotive fuel. The exception of those used for electrical generation in non-interconnected areas, the turbo-jet fuel and the IFO-type mixtures used for the operation of large maritime vessels.

Fuels used in fishing and/or cabotage activities on the Colombian coast and in maritime activities developed by the National Navy, owned by the Coast Guard, as provided for in Decree 1874 of 1979, will be exempt from the overall tax. For the control of this operation, strict quotas of consumption will be established and their management will be subject to regulation by the Government.

Likewise, for all purposes of this Law, it is understood by gasoline, current gasoline, extra gasoline, naphtha or any other fuel or liquid derived from petroleum that can be used as fuel in engines of internal combustion designed to be used with petrol. The exception of petrol of type 100/130 used in aircraft. '

ARTICLE 3o. Add article 118 of Law 488 of 1998 with the following paragraph:

" Paragraph. For all the purposes of this law, ACPM, motor fuel oil, marine or river diesel, marine diesel, gas oil, intersol, diesel number 2, electrofuel or any medium distillate and/or binding oils are understood to be the same. For their chemical physical properties as well as for their performances in high-rev engines, they can be used as automotive fuel. The exception of those used for electrical generation in non-interconnected areas, the turbo-jet fuel and the IFO-type mixtures used for the operation of large maritime vessels.

The fuels used in fishing and/or cabotage activities on the Colombian coast and in the maritime activities developed by the National Navy, owned by the Coast Guard, as provided for in Decree 1874 of 1979, will be Free of charge. For the control of this operation, strict quotas of consumption will be established and their management will be subject to regulation by the Government.

Likewise, for all purposes of this law, it is understood by gasoline, current gasoline, extra gasoline, naphtha or any other fuel or liquid derived from petroleum, that can be used as fuel in engines of internal combustion designed to be used with petrol. The exception of petrol of type 100/130 used in aircraft. '

ARTICLE 4o. Subparagraph 1o. Article 124 of Law 488 of 1998 will thus remain:

" Article 124. Declaration and payment. The persons responsible shall comply monthly with the obligation to declare and pay the surcharges, in the financial institutions authorized for this purpose, within the eighteen (18) first calendar days of the month following the month of causation. In addition to the declaration and payment obligations, the officials of the surcharge will inform the Ministry of Finance and Public Credit-Directorate of Fiscal Support, the distribution of the fuel, discriminated monthly by territorial entity, type of fuel and quantity of fuel.

Those responsible must comply with the obligation to declare in those territorial entities where they have an operation, even if no taxable transactions have been carried out within the taxable period. "

ARTICLE 5o. Repeal article 46 of Act 383 of 1997.

ARTICLE 6o. Modify the first paragraph and paragraph of article 59 of Act 223 of 1995 as follows:

" Article 59. Taxable base and rate. The global tax on regular gasoline will be settled and paid at the rate of five hundred three pesos with sixty-two cents ($503.62) per gallon. The ACPM will settle and pay for three hundred and thirty-three pesos with seventy-nine cents ($333.79) per gallon. That of the extra gasoline will be settled and will pay at the rate of five hundred and seventy nine pesos with seventeen cents ($579.17) per gallon.

PARAGRAFO. The absolute values expressed in national currency included in this article, are constant weights of 2001 and will be reset to 1o. of March of each year, in accordance with the inflation target established by the Bank of the Republic for the corresponding year in which the adjustment is made. "

ARTICLE 7o. Article 129 of Law 488 of 1998, will be as follows:

" Article 129. Competence to administer the national surcharge. The surcharges referred to in article 128 of this law will be administered by the Fiscal Support Directorate of the Ministry of Finance and Public Credit. For this purpose, in the audit, official determination, discussion, recovery, refunds and penalties, the procedures laid down in the Tax Statute for the taxes of the national order shall apply. The system of penalties applicable shall be that provided for in the same legal order, except for the penalty for not declaring, which shall be equivalent to 30% (30%) of the total in charge shown in the last declaration submitted by the the same concept, or thirty per cent (30%) of the value of the sales of petrol or ACPM made in the same period covered by the penalty, in the event that there is no final statement.

PARAGRAFO 1o. If within the term to bring the action against the resolution imposing the penalty for not declaring, the person responsible presents the declaration, the penalty for not declaring will be reduced to fifty percent (50%) of the value of the sanction initially imposed by the Tax Support Directorate of the Ministry of Finance and Public Credit, in which case, the person responsible must liquidate it and pay it when filing the tax return. In any event, this penalty may not be less than the value of the penalty for extemporaneity provided for in the first paragraph of article 642 of the Tax Statute.

PARAGRAFO 2o. The penalty for not declaring provided for in this article, will also apply for those forced to declare to the territorial entities by concept of surcharges to the Gasolina. In this case, the jurisdiction shall correspond to the respective territorial entity. "

ARTICLE 8o. COMPENSATION. In the event where there are turns of the uncaused in favor of a territorial entity, the person responsible may discount the future amount of the tax, the equivalent to the surcharge that did not correspond to such territorial entity.

ARTICLE 9o. ELECTRONIC PRESENTATION OF DECLARATIONS. The National Government may authorize the presentation and payment of the declarations of the surcharges to the gasoline and the ACPM and the fuels approved to them, through electronic means in the conditions and with the securities established by the regulation that for this purpose will be issued by the Ministry of Finance and Public Credit, Directorate of Fiscal Support-DAF.

The National Government will regulate the adoption of a single national system for the control of the transportation of the products taxed with the gasoline and the ACPM.

ARTICLE 10. FORMULA FOR DETERMINING THE COMPONENTS OF JET A1 AVIATION GASOLINE PRICING STRUCTURE. 276 of Act 1450 of 2011. In the terms set out in article 116 of the same Law >

ARTICLE 11. INCOME TO THE PRODUCER. 276 of Law 1450 of 2011. In the terms set out in article 116 of the same Law >

ARTICLE 12. The Government through the Ministry of Mines and Energy will regulate the rates in pesos per gallon per gallon per concept of transportation through the polyductus system.

PARAGRAFO. 276 of Act 1450 of 2011. In the terms set out in article 116 of the same Law >

ARTICLE 13. The transport system for the ownership of Ecopetrol is declared open to third parties. Also integrated into the transport system are the Poliductos Pozos Colorados-Galán and Buenaventora-Yumbo, which are also declared open access.

Ecopetrol will ensure access to third parties to the transport of products by the polyductus system, based on the principle of non-discrimination.

The government will regulate the provisions of this article.

ARTICLE 14. For large individual non-intermediary consumers of ACPM, the income to the producer (ip) to which Ecopetrol sells, shall be at least the same export price of the same.

The government will regulate the provisions of this article.

ARTICLE 15. This law applies as of the date of its publication in the Official Journal; it amends article 19 of Law 191 of 1995; amends the paragraph of article 58 of Act 223 of 1995; modifies the first paragraph and paragraph of article 59 of Act 223 of 1995, in addition to article 118 of Law 488 of 1998; amends paragraph 1. of article 124 and article 129 of Law 488 of 1998; and repeals all rules that are contrary to it in particular href="ley_0488_1998_pr002.html#100"> 100 of Law 488 of 1998, article 46 of Act 383 of 1997, and article 86 of Law 633 of 2000.

The President of the honorable Senate of the Republic,

CARLOS GARCIA ORJUELA.

The Secretary General of the honorable Senate of the Republic,

MANUEL ENRIQUEZ ROSERO.

The President of the honorable House of Representatives,

GUILLERMO GAVIRIA ZAPATA.

The Secretary General of the honorable House of Representatives,

ANGELINO LIZANO RIVERA.

Republic of Colombia-National Government

Publish and comply.

Dada en Bogotá, D. C., 9 August 2001

ANDRES PASTRANA ARANGO

The Minister of Finance and Public Credit,

JUAN MANUEL SANTOS CALDERÓN.

The Minister of Mines and Energy,

LUIS RAMIRO VALENCIA COSSIO.

Presidency of the Republic