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Act 1074 2006

Original Language Title: LEY 1074 de 2006

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1074 OF 2006

(July 31)

Official Journal No. 46.346 of 31 July 2006

CONGRESS OF THE REPUBLIC

By means of which the Economic Complementation Agreement number 33 (Free Trade Agreement) concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela-Sixth "Additional Protocol", signed in the city of Montevideo, Uruguay, at three (3) days of August of two thousand five (2005).

Vigency Notes Summary

THE CONGRESS OF THE REPUBLIC

Having regard to the text of the "Economic Complementation Agreement number 33 (Free Trade Agreement) concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela-Sixth Additional Protocol," subscribed in the city of Montevideo, Uruguay, at three (3) days of the month of August of two thousand five (2005), which to the letter says:

(To be transcribed: photocopy of the full text of the International Instrument mentioned).

2005 BILL NUMBER 72

by means of which the Economic Complementation Agreement number 33 (Free Trade Agreement) concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela-Sixth "Additional Protocol", signed in the city of Montevideo, Uruguay, at three (3) days of August of two thousand five (2005).

THE CONGRESS OF THE REPUBLIC

Having regard to the text of the "Economic Complementation Agreement number 33 (Free Trade Agreement) concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela-Sixth Additional Protocol," subscribed in the city of Montevideo, Uruguay, at three (3) days of August of two thousand five (2005).

(To be transcribed: photocopy of the full text of the International Instrument mentioned).

ECONOMIC COMPLEMENTATION AGREEMENT NUMBER 33 (FREE TRADE AGREEMENT) CONCLUDED BETWEEN THE REPUBLIC OF COLOMBIA, THE UNITED STATES OF MEXICO AND THE BOLIVARIAN REPUBLIC OF VENEZUELA

Sixth Additional Protocol

the Plenipotentiaries of the Republic of Colombia of the United Mexican States and of the Republic of Venezuela, accredited by their respective governments according to powers that were granted in good and due form in due time in the General Secretariat of the Latin American Integration Association (ALADI).

VISTO. Decision 42 of the Administrative Commission of the Free Trade Agreement and in accordance with the provisions set out in Article 3-04 of Chapter III of Annex 1 to Article 3-04 of Chapter III of Article 4-03.2 (a), paragraph iii, in Article 4-04.2 (b) and Chapter VI of the Treaty.

AGREE:

Article 1o. Adopt the recommendation of the Committee of the Automotive Sector of the Treaty, for which the automotive sector is incorporated into the program of relief of the Economic Complementation Agreement number 33 (Treaty) and the rules of origin are established for this sector, in accordance with the conditions laid down in Appendices I, II and III of Decision 42 dated 21 February 2005, which is annexed to and integrates with this Protocol.

Article 2o. This Protocol shall enter into force once the Parties have exchanged communications certifying that the necessary legal formalities have been completed.

The provisions of the preceding paragraph shall not prevent Colombia in accordance with its legislation from provisional application of this Protocol.

The General Secretariat of the ALADI shall be deposited with this Protocol, from which it will send duly authenticated copies to the signatory governments.

IN FE OF THE CUAL, the respective Plenipotentiaries subscribe to this Protocol in the city of Montevideo, at the three days of August of two thousand five, in original in Spanish.

By the Government of the Republic of Colombia,

CLAUDIA TURBAY QUINTERO.

By the Government of the United Mexican States,

PEARL CARVALHO.

By the Government of the Bolivarian Republic of Venezuela,

MARIA LOURDES URBANJA.

Officer in charge of the Secretary-General's office,

JORGE RIVERO.

DECISION 42

The Administrative Commission of the Free Trade Agreement concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela (Treaty), in compliance with the provisions of Article 20-01.2, points (b) and (f) of the Treaty,

DECIDE

1. Adopt the recommendation of the Committee of the Automotive Sector of the Treaty, for which the automotive sector is incorporated into the program of relief of the Treaty, and the rules of origin for this sector are established, according to the conditions established in Appendices I, II and III to this Decision.

2. Recommend to the Parties to carry out the adjustments contained in Appendices I, II and III to this Decision, in accordance with the provisions set out in Annex 1 to Article 3-04 of Chapter III of Annex I, in Article 4-03.2 (a), paragraph iii, in Article 4-04.2 (b) and Chapter VI of the Treaty.

3. This Decision shall enter into force once the Parties have exchanged communications certifying that the necessary legal formalities have been completed.

The provisions of the previous paragraph do not prevent Colombia, in accordance with its legislation, from applying provisional application to this Decision.

Signed on February 21, 2005.

By the United Mexican States,

FERNANDO CHANNELS CLAROND.

By the Republic of Colombia,

JORGE H. BOTERO ANGULO.

By the Bolivarian Republic of Venezuela,

WILMAR CASTRO SOTELDO.

APPENDIX I.

Number 8 of Annex 1 to Article 3-04 of the Treaty is amended to remain as follows:

8. The import tax applicable to motor vehicles originating for the purposes of tariff relief shall be that provided for in Annexes 1, 2, 3, 4, 5 and 6 of Chapter IV (Automotive Sector)

APPENDIX II.

Chapter IV of the Treaty is replaced, to remain as follows:

Chapter IV

Sector, automotive

Item 4-01: Definitions

For the purposes of this chapter:

Model: the period from November 1 to 31 October of the following year;

Comprehensive buses: vehicles without chassis (frame) and with integrated bodywork, intended for the transport of more than 16 persons, including the driver, and which are classified under heading 8702 (buses self-supporting);

Auto Goods: Goods that are classified under the tariff codes specified in Article 4-02;

Rebuilt or Replaced Goods: goods that after being used have undergone some process to restore their original features or specifications, or to return functionality to them. they had when new.

Trucks and tractor trucks up to 4.4 tons of gross vehicle weight: vehicles with chassis (frame) for the transport of goods, with a gross vehicle weight of up to 4,400 kilograms and which are classified in the item 8704;

Truck and tractor trucks of 4.4 up to 8.8 tons of gross vehicle weight: vehicles with chassis (frame) for the carriage of goods, with a gross vehicle weight of 4,400 kilograms and up to 8,845 kilograms which are classified under subheading 8701.20 or heading 8704;

Truck and tractor trucks of 8.8 to 15 tons of gross vehicle weight: vehicles with chassis (frame) for the carriage of goods, with a gross vehicle weight of 8,845 kilograms and up to 15,000 kilograms which are classified under subheading 8701.20 or heading 8704;

Trucks and tractor-trailers of more than 15 tons of gross vehicle weight: vehicles with chassis (frame) for the transport of goods, with a gross vehicle weight of 15,000 kilograms or more and which are classified in the subheading 8701.20 or heading 8704;

Gross vehicle weight: The actual weight of the vehicle expressed in kilograms, in addition to the maximum load capacity according to the manufacturer's specifications and to that of its full fuel tank; and

Used automotive vehicle: A vehicle:

a) sold, leased or borrowed;

b) handled by more than:

i) 200 km, in the case of vehicles with a gross vehicle weight of less than five tonnes;

(ii) 2,000 km, in the case of vehicles of gross vehicle weight equal to or greater than five tonnes; or

(c) manufactured prior to the current model year and at least 60 days after the date of its manufacture.

Article 4-02: Removing import taxes.

1. Each Party shall waive its import duties on motor vehicles originating in a Party which are classified under tariff headings 87.03 and 87.04 (except for gross vehicle weight greater than 8.8 tonnes) in accordance with the following:

a) Colombia and Venezuela will grant a quota to Mexico in accordance with the following schedule:


Annual units
to export
inside
from quota to

From the
1o January
2005

From the
1o January
2006

From the
1o January
from 2007

From the
1o January
20 08

From the
1o January
from 2009

From the
1o January
of 2010

Colombia

3,000

4,000

5,000

6,000

7,000

8,000

Venezuela

3,000

4,000

5,000

6,000

7,000

8,000


Tax import within
of the quota

10%

8%

6%

4%

0%

0%

b) Mexico will award quotas to Colombia and Venezuela in accordance with the following schedule:


Annual units
to export within
of quota by:

From the
1o January
2005

From the
1o January
2006

From the
1o January
from 2007

From the
1o January
of 2008

Colombia

6,000

7,000

8,000

9,000

Venezuela

6,000

7,000

8,000

9,000

Import tax within the quota

7%

5%

3%

0%

c) For imports out of quota:

i. Colombia and Venezuela shall eliminate their import taxes for the originating automotive goods indicated in this paragraph in accordance with the provisions of Annexes 1 and 2 respectively.

ii. Mexico shall eliminate its import taxes for the originating automotive goods indicated in this paragraph in accordance with Annex 3.

(d) The quotas referred to in points (a) and (b) above shall be eliminated in accordance with the following:

i. Colombia and Venezuela will eliminate the quota from January 1, 2011, and imports of automotive goods originating in and coming from Mexico will be free of import duty.

ii. Mexico will eliminate the quota from 1 January 2009, and imports of automotive goods originating in Colombia and Venezuela will be free of import duty.

2. Colombia and Venezuela will eliminate their import taxes on automotive goods up to 15 tons of gross vehicle weight that are classified under subheading 8701.20; and of more than 8.8 tons of gross vehicle weight and up to 15 tons of vehicles. Gross vehicle weight falling within heading No 87.04, motor vehicles falling within heading Nos 87.05 and 87.06, and non-integral buses of heading 87,02 originating in a Party in accordance with the provisions of the Annexes 1 and 2, respectively.

As of January 1, 2011, imports from Colombia and Venezuela of automotive goods originating in and coming from Mexico will be free of import duty.

3. Mexico will eliminate its import taxes on automotive goods up to 15 tons of gross vehicle weight that are classified under subheading 8701.20; and more than 8.8 tons of gross vehicle weight and up to 15 tons of gross weight Vehicles classified under heading 87.04, motor vehicles falling within heading Nos 87.05 and 87.06, and non-integral buses of heading 87,02. originating in a Party in accordance with the provisions of Annex 3.

As of 1 January 2009, imports from Mexico of originating and originating goods from Colombia and Venezuela will be free of import duty.

4. Each Party shall eliminate its import duties by 11 equal annual reductions from 1 January 1997, on trucks and tractor trailers of more than 15 tonnes of gross vehicle weight and on integral buses originating in a Party. These goods will be duty free on 1 January 2007.

5. Each Party shall waive its import duties on auto parts originating in a Party included in Annexes 4 (Colombia), 5 (Venezuela) and 6 (Mexico) in accordance with the following tariff relief codes:

i) A: Immediate removal of the import tax.

(ii) B: Disgravitation in 3 equal annual reductions from 1 January 2005 to be eliminated on 1 January 2007.

iii) B *: Importation of import taxes in a single cut to be eliminated on January 1, 2007.

iv) B +: Importation of import taxes from 1 January 2005 in 5 equal annual stages to be eliminated on 1 January 2009.

v) C: Importation of import taxes from 1 January 2005 in 6 equal annual stages to be eliminated on 1 January 2010.

vi) Excl.: excluded from the relief program.

Article 4-03: Automotive Sector Committee.

1. The Parties agree to constitute an Automotive Sector Committee composed of representatives of the governments of each of the three Parties.

2. The Committee's objective is to ensure that the provisions of this Chapter are complied with and to make the recommendations it considers relevant to the Commission. Their functions will be:

(a) Analyze the policies of the automotive industry and related rules applied by each Party and make appropriate recommendations to the Commission to achieve the elimination of barriers to trade and greater economic complementation of the sector;

b) Recommend any acceleration in the reduction of import taxes on automotive goods, taking into account the differences in the degree of development of the automotive industries located in each Party's territory;

(c) Other functions that the Parties may deem necessary for compliance with the provisions of this Chapter.

3. The Committee shall meet when deemed necessary by any of the Parties.

Item 4-04: Preferences extension.

If, after the entry into force of this Decision, Colombia and Venezuela grant a country not a more favorable treatment for goods in the automotive sector than the treatment provided for in this chapter for Mexico, this treatment is immediately and unconditionally extend the goods originating in Mexico.

Effective Case-law

Article 4-05: Used automotive goods.

Unless otherwise provided in this Treaty, the Parties may adopt or

to maintain prohibitions or restrictions on the import of used motor vehicles and other used, reconstructed or refaced automotive goods. These goods are excluded from the Degravitation Program.

Article 4-06: Administration of quotas.

1. The quotas shall be annual and shall be administered by the exporting country.

2. The mechanism for the administration of quotas in the case of Colombia and Venezuela shall be determined by each Party according to the needs that exist each year.

3. The mechanism for the administration of quotas in the case of Mexico will be the direct allocation to producers established in Mexico, according to the following criteria:

a) Maximum utilization of annual quotas;

b) Annual export needs by country, and

c) If the assigned quotas are exceeded, the annual amounts will be adjusted in a weighted manner for all participating companies.

4. The quotas granted are minimal, so each Party may, in accordance with its internal needs, unilaterally grant a larger quota.

5. The quota allocation documents issued by each Party shall be submitted to the competent authorities of the importing Party for the purpose of certifying and recording the amount allocated.

Article 4-07: General provisions.

In the event of incompatibility between any provision of this chapter and any other provision of this Treaty, the provisions of this Chapter shall prevail in the measure of incompatibility.

APPENDIX III.

1. The regional content value of an automotive asset shall be calculated in accordance with Article 6-04 of the Treaty.

Amendments or adaptations to Section B of Annex 6-03 of the Treaty:

2. Remove item 40.09 to 40.17 (including Note 1 of Section B (Specific Rules of Origin) of the Annex to Article 6-03), and the applicable rule of origin for the same, and replace with the following rules:

4009.11-4009.31 A change to subheadings 4009.11 to 4009.31 from any other item,

except for heading 40.10 to 40.17.

4009.32 A change to subheading 4009.32 of any other item except the

heading 40.10 to 40.17; or

no change in tariff classification is required for the automotive goods of

subheading 4009.32, complying with a regional content not less than 50%.

4009.41-4009.42 A change to subheadings 4009.41 to 4009.42 from any other item,

except for heading 40.10 to 40.17.

40.10-40.17 A change to heading 40.10 to 40.17 of any other departure outside the group,

except for heading 40.09.

3. Delete Note 2 and 4 of Section B (Specific Rules of Origin) of the Annex to Article 6-03.

4. Remove subheading 7003.12 to 7009.10 (including Notes 5 and 6 of Section B (Specific Rules of Origin) of the Annex to Article 6-03), and the rule of origin applicable to it and replace with the following rules:

70,03-70.06 A change to heading 70.03 to 70.06 from any other item outside the group,

except for heading 70.07 or 70.08.

7007.11 A change to subheading 7007.11 of any other item except the

item 70.03 to 70.04, 70.06 or 70.08 or subheadings 7005.10 or 7005.30; or

no change in tariff classification is required for the automotive goods of

subheading 7007.11, complying with a regional content not less than 50%.

7007.19 A change to subheading 7007.19 from any other item except the

starting 70.03 to 70.06 or 70.08.

7007.21 A change to subheading 7007.21 from any other item except the

item 70.03 to 70.04, 70.06 or 70.08 or subheadings 7005.10 or 7005.30; or

no change in tariff classification is required for the automotive goods of

subheading 7007.21, complying with a regional content not less than 50%.

7007.29 A change to subheading 7007.29 from any other item except the

starting 70.03 to 70.06 or 70.08.

70.08 A change to heading 70.08 of any other item except for the item

70.03 to 70.07.

7009.10 A change to subheading 7009.10 of any other subheading, complying with

a regional content not less than 55%.

5. Remove Note 7 to 14 from Section B (Specific Rules of Origin) of the Annex to Article 6-03.

6. Add to Section B (Specific Rules of Origin) of the Annex to Article 6-03 subheading 8415.20 and the applicable rule of origin for the same:

8415.20 A change to subheading 8415.20 of any subheading except the

tariff fraction 8415.90.aa, or assemblies containing at least two of

the following: compressor, condenser, evaporator, connection tube; or a

change to subheading 8415.20 of any other subheadings, complying with an

regional content not less than 50%.

7. Remove note 15 to 37 from Section B (Specific Rules of Origin) of the Annex to Article 6-03.

8. Remove subheading 8527.12 to 8527.39 (including Note 38 of Section B (Specific Rules of Origin) of the Annex to Article 6-03), and the rule of origin applicable to it, and replaced by the following rule:

8527.12-8527.39 A change to subheading 8527.12 to 8527.39 of any other item; or

no change in tariff classification is required for the automotive goods of

subheadings 8527.12 to 8527.39, complying with a regional content not

less than 50%.

9. Remove Note 39 to 41 from Section B (Specific Rules of Origin) of the Annex to Article 6-03.

10. Add to Section B (Specific Rules of Origin) of the Annex to Article 6-03 subheading 8701.20, 8703.21 to 8703.90, 8704.21 to 8704.90, 8708.10 to 8708.99, heading 87.02, 87.05, 87.06 and 87.07 and the rule of origin applicable to them:

8701.20 No tariff classification change required under subheading 8701.20,

complying with a regional content not less than 50%.

87.02 No tariff classification change required at item 87.02,

complying with a regional content not less than 50%.

8703.21-8703.90 No tariff classification change required under subheading 8703.21 to

8703.90, complying with a regional content not less than 40%.

8704.21-8704.90 No tariff classification change required for vehicles with weight

gross vehicle up to 4.4 tons complying with regional content not

less than 40%; or

no tariff classification change required for vehicles with gross weight

vehicles greater than 4.4 tons and up to 8.8 tons complying with an

regional content not less than 35%; or

no tariff classification change required for any other good of the

subheading 8704.21 to 8704.90, complying with non-minor regional content

to 50%.

87.05 No tariff classification change required at item 87.05,

complying with a regional content not less than 50%.

87.06 No change in tariff classification to chassis with gross weight

vehicles up to 4.4 tons complying with regional content not less than

40%; or

no change in tariff classification to chassis with gross weight

vehicles greater than 4.4 tons and up to 8.8 tons complying with an

regional content not less than 35%; or

no tariff classification change required for any other good of the

item 87.06, meeting regional content not less than 50%.

87.07 A change to item 87.07 of any other item except the item

87.08; or

no tariff classification change required at item 87.07, meeting

with a regional content not less than 50%.

8708.10-8708.99 A change to subheading 8708.10 to 8708.99 from any other item; or

no tariff classification change required under subheading 8708.10 to

8708.99, complying with a regional content not less than 50%.

11. Remove subheading 8716.10 to 8716.80 (including note 43 to 44 of Section B (Specific Rules of Origin) of the Annex to Article 6-03), the rule of origin applicable to it, and are replaced by the following rules:

8716.10-8716.80 A change to subheading 8716.10 to 8716.80 of any other item; or

a change to subheading 8716.10 to 8716.80 of subheading 8716.90,

having or not changes from any other item, complying with a content

regional not less than 50%.

8716.90 A change to subheading 8716.90 of any other item; or

no tariff classification change required for subheading 8716.90,

complying with a regional content not less than 50%.

12. Remove note 45 to 50 from Section B (Specific Rules of Origin) of the Annex to Article 6-03.

13. Remove subheading 9401.10 to 9401.80 (including Note 51 of Section B (Specific Rules of Origin) of the Annex to Article 6-03), the rule of origin applicable to it, and are replaced by the following rules:

9401.10 A change to subheading 9401.10 of any other chapter; or

a change to subheading 9401.10 of subheading 9401.90, having or not

changes from any other chapter, meeting regional content not

less than 55%.

9401.20 A change to subheading 9401.20 of any other chapter; or

a change to subheading 9401.20 of subheading 9401.90, having or not

changes from any other chapter, meeting regional content not

less than 50%.

9401.30-9401.80 A change to subheading 9401.30 to 9401.80 of any other chapter; or

a change to subheading 9401.30 to 9401.80 of subheading 9401.90,

having or not changes from any other chapter, complying with a content

regional not less than 55%.

14. Remove note 52 from Section B (Specific Rules of Origin) of the Annex to Article 6-03.

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EXECUTIVE BRANCH OF PUBLIC POWER

PRESIDENCY OF THE REPUBLIC

Bogotá, D. C., ...

Approved. Submit to the consideration of the honorable National Congress for the constitutional effects.

(Fdo.) ALVARO URIBE VELEZ

The Deputy Minister of Foreign Affairs in charge of the functions of the Minister's Office,

(FDO.) CAMILO REYES RODRIGUEZ.

DECRETA:

Article 1o. Approve the "Economic Complementation Agreement number 33 (Free Trade Agreement) concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela-Sixth Additional Protocol," signed in the city of Montevideo, Uruguay, at three (3) days of August of two thousand five (2005).

Article 2o. In accordance with the provisions of Article 1 of Law 7ª of 1944, the Economic Complementation Agreement number 33 (Free Trade Agreement) concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela-Sixth Additional Protocol, signed in the city of Montevideo, Uruguay, at three (3) days of August of two thousand five (2005), which by article 1 of this law is approved, will force the country from the date on which it is perfected the international link with respect to the same.

Article 3o. This law governs from the date of its publication.

Dada en Bogotá, D. C., a los ...

Presented to the honorable Congress of the Republic by the Minister of Foreign Affairs and the Minister of Commerce, Industry and Tourism.

The Foreign Minister,

CAROLINA BOAT ISAKSON.

The Minister of Commerce, Industry and Tourism,

JORGE HUMBERTO BOTERO.

EXECUTIVE BRANCH OF PUBLIC POWER

PRESIDENCY OF THE REPUBLIC

Bogotá, D. C., August 10, 2005.

Approved. Submit to the consideration of the honorable National Congress for the constitutional effects.

(Fdo.) ALVARO URIBE VELEZ

The Foreign Minister,

(FDO.) CAROLINA BOAT ISAKSON.

DECRETA:

Article 1o. Approve the "Economic Complementation Agreement number 33 (Free Trade Agreement) concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela-Sixth Additional Protocol," signed in the city of Montevideo, Uruguay, at three (3) days of August of two thousand five (2005).

Article 2o. In accordance with the provisions of Article 1 of Law 7ª of 1944, the Economic Complementation Agreement number 33 (Free Trade Agreement) concluded between the Republic of Colombia, the United Mexican States and the Bolivarian Republic of Venezuela-Sixth Additional Protocol ", signed in the city of Montevideo, Uruguay, at three (3) days of August of two thousand five (2005), which by article 1o of this law is approved, will force the country to leave of the date on which the international link with respect to the same is improved.

Article 3o. This law governs from the date of its publication.

The President of the honorable Senate of the Republic,

BARBERI ' S CLAUDIA BLUM.

The Secretary General of the honorable Senate of the Republic,

EMILIO RAMON OTERO DAJUD.

The President of the honorable House of Representatives,

JULY E. GALLARDO ARCHBOLD.

The Secretary General of the honorable House of Representatives,

ANGELINO LIZANO RIVERA.

COLOMBIA-NATIONAL GOVERNMENT

Communicate and comply.

Execute, upon review of the Constitutional Court, pursuant to article 241-10 of the Political Constitution.

Dada en Bogotá, D. C., at 31 July 2006.

ALVARO URIBE VELEZ

The Foreign Minister,

CAROLINA BOAT ISAKSON.

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