The effect of Lower Tariffs would be limited

The effect of lower tariffs would be limited, according to businessmen.

The solution would not be total and would have to be applied for at least a year to see its impact. The government’s first response to the container crisis and rising transportation costs is to cut import tariffs, a move that businessmen say would have little effect. (Traders are proposing a reduction in tariffs due to the container crisis.

According to María Ximena Lombana, Minister of Commerce, the Customs, Tariffs and Foreign Trade Commission (Triple-A) recommended updating the list of materials raw materials and capital goods that the country does not produce and which are imported with a customs duty of 0% (Decree 272 of 2018), in the classification of Major Economic Categories.

The measure would be transversal to all sectors and would leave 3,822 sub-items (products), at zero tariff 166 more sub-items than the current ones, of which 2,879 correspond to raw materials and 943 to capital goods, metallurgy, chemicals, electricity and electronics, textiles and clothing, pharmaceuticals, engineering, forestry and wood, paper and cardboard, rubber, footwear and leather goods, agriculture, among others. to support exports of goods and non-mining energy services, the Vallejo Il Piano Exprés would be in effect. hours until April 2023.

CLARITY OF MEASURES The merchants’ proposal is to reduce the tax on raw materials to 0% and 5% for finished products for one year.

“With the Andean Community, we are also trying to eliminate the value of insurance and freight rates in imports from all sectors, this is a measure that we will do next week and that would be implemented for at least one year to enter into force and not just be temporary,” said Javier Díaz, President of Index.

(Global trade, in ‘check’ due to the shortage and the high cost of containers). President of AmCham Colombia, so far no country has adopted tariff reduction measures stemming from the container risk crisis. to the industry which needs imported raw materials. However, this also poses a risk as it generates a larger trade deficit, so it would be desirable that, as tariffs are reduced, similar measures should be taken.

They Are sought after in target markets, ”he said. According to Jorge Bedoya, president of the Association of Colombian Farmers Society (SAC), we have to wait for the list of products that the government is studying, “it makes sense to include food because of the difficulties with unemployment, lockdowns, time.

We need to clarify what Fenalco is asking for and what the government has done “.Colombia has the capacity to supply the domestic market and this is an opportunity to export, so importing at zero tariffs would be fatal for national traders, ”he said. In his view, if commodity tariffs were lowered, this advantage would not solve shortage problems. “If you talk about 25 days of transit for an average container, those times are now around 75 days. She would not see each other before the first quarter of 2022 ”.

Acopia executive director Rosmery Quintero warned that the union “does not agree with the measure because it violates the processing industry and the primary sector. It is one thing to import raw materials or products for which we have no capacity. “But bringing in goods for which the country has the capacity does serious damage to industry and the economy.”

He says the situation in China must be exploited so that the country can attract underserved customers (product shortages are a concern for year-end sales. Grupo Éxito, which bases its offering on domestic industry, warns that the crisis of containers and international logistics affects us mainly in the electronic digital category since they are mostly produced not produced in the country.

“We have strengthened our offer with the help of our suppliers, we have made multiple efforts to mitigate the impact by ordering in advance, among other actions,” said Carlos Ariel Gómez, vice president of commerce and supply.

On the other hand, Santiago Holguín, general manager of Lenovo, said that for home computers and in the business sector, the measure will have no effect, since they do not pay a commission. the government’s response to the demand from traders is on track but underlined that “we intend to take more general measures for all raw materials destined for the domestic industry and which are part of what it sells. trade and, of course,