Free Trade Implementation Activity (FTIA) February–April 2015 Quarterly Report

The report outlines the progress made by the project in implementing trade facilitation measures in Colombia. The project is funded by the United States Agency for International Development (USAID) and is implemented by Nathan Associates Inc. The report highlights the progress made in strengthening customs policies and enforcement practices, particularly in the areas of inspector training, advance ruling systems, and risk management. The project has worked closely with the Colombian tax and customs authority, DIAN, to develop an inspector training program that focuses on improving operational and technical aspects of customs and trade. The report notes that DIAN has made significant progress in developing its inspector training program, including the creation of a new methodology for Colombia's authorized economic operator (AEO) program. The project has also worked with DIAN to improve its risk management system, including the integration of risk management across DIAN's operations and systems. In addition to the progress made in strengthening customs policies and enforcement practices, the report highlights the project's efforts to improve technical standards and compliance. The project has worked with DIAN to conduct a WTO Code of Good Practice Workshop and to assist with U.S. Food and Drug Administration's (FDA) Food Safety Modernization Act (FSMA) compliance. The report also notes that the project has faced challenges in implementing trade facilitation measures, including the delay in finalizing Colombia's new customs code. The code contains several trade facilitation commitments made under the Colombia Trade Promotion Agreement (CTPA), but its finalization has been stalled due to opposition from the private sector. Despite these challenges, the project has continued to work with DIAN to improve customs clearance times and to strengthen DIAN's institutional capacity and human capital. The project has also worked with the private sector to gather inputs and build awareness on problematic deficiencies in the customs operation and to counter local practices with international best practices. The report concludes by highlighting the project's strategy to position itself as an objective stakeholder between DIAN and the private sector. The project has made progress in changing valuation practices, limiting the role of the inspector at the border, addressing misconceptions on advance rulings, and the need to do away with burdensome import documentation. The project's technical assistance under Component 1 is centered on improving operational and technical aspects of customs and trade, particularly as it relates to imports. Activities are also intended on improving border management transparency and importer compliance. The project has worked with DIAN to develop an inspector training program that focuses on improving operational and technical aspects of customs and trade. The report notes that the International Trade Centre released its report findings on non-tariff barriers to trade in Colombia in March 2015. The report found that 730 companies were surveyed, of which 40 percent indicated they faced challenges when importing into Colombia—mostly due to inspections at the border by DIAN. Out of eight trade barriers identified, 51 percent attributed problems to inspections, followed by 20 percent attributing it to conformity assessments, and 17 percent to technical requirements. The project has worked with DIAN to help focus its training needs, including evaluating the existing training material and its suitability for the inspector's role at the border. The project has also worked with DIAN to improve its risk management system, including the integration of risk management across DIAN's operations and systems. The report concludes by highlighting the project's progress in implementing trade facilitation measures in Colombia and its efforts to strengthen DIAN's institutional capacity and human capital. The project has made significant progress in improving customs clearance times and in changing valuation practices, limiting the role of the inspector at the border, addressing misconceptions on advance rulings, and the need to do away with burdensome import documentation.